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UPDATE 1-IEA sees oil demand recovery outpacing growth in supply

Published 12/05/2021, 09:02
Updated 12/05/2021, 09:06
© Reuters.

By Noah Browning
LONDON, May 12 (Reuters) - Demand for oil will exceed the
output of top producers due to progress in vaccinating the world
against COVID-19, the International Energy Agency (IEA) said on
Wednesday.
"The anticipated supply growth through the rest of this year
comes nowhere close to matching our forecast for significantly
stronger demand beyond the second quarter," the IEA said in its
monthly report, citing increased pumping from OPEC+ countries.
Output from the Organization of the Petroleum Exporting
Countries (OPEC) and allies including Russia, the so-called
OPEC+ group of producers, already lags demand for its oil by
150,000 barrels per day (bpd) and that is expected to widen to a
2.5 million bpd shortfall by year's end, the Paris-based
watchdog said.
New waves of infections in Brazil and Thailand and even
India - the world's third-largest consumer suffering
record-breaking cases - were not enough to derail the trend but
could continue to affect the market, it added.
"India's COVID crisis is a reminder that the outlook for oil
demand is mired in uncertainty. Until the pandemic is brought
under control, market volatility is likely to persist."


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