Moody’s Investors Service upgraded its outlook for the global energy industry on Monday, citing a sustained increase in commodity prices and expectations for global economic growth to drive increased oil and gas demand over the next 12 to 18 months.

The firm said it expects that, as vaccine programs become prevalent and the coronavirus outbreaks fade, increased travel should drive demand for oil while greater commercial and industrial activity should boost demand for natural gas.

“Pent-up consumer demand and increasing trade and manufacturing activity as the Covid-19 pandemic is brought under control are driving a rebound in global economic activity,” said Elena Nadtotchi, a Moody’s Senior Vice President. “This, in turn, is quickening the pace of a recovery in demand for oil...