IEA remarks in its monthly report
- Rebalancing of oil market remains fragile amid weaker estimates for demand
- Cuts forecast for world oil consumption by 200k bpd for 2021
- Bolsters forecast for supplies outside of OPEC by 400k bpd
That said, the agency is keeping a more positive outlook - especially for the second-half of the year - with inventories expected to diminish after the summer.
"Renewed lockdowns, stringent mobility restrictions and a rather slow vaccine rollout in Europe have delayed the anticipated rebound..Fresh support has been provided by a more positive economic outlook. A rapid stock draw is anticipated during the second half of the year. That sets the stage for OPEC+ to start unwinding cuts even if producers outside the group ramp up faster than currently projected."
OPEC+ ministers will be meeting again next month and in April so look out for that when evaluating the oil outlook ahead of 2H 2021.
