(Adds detail)
By Noah Browning
LONDON, April 14 (Reuters) - Vaccine rollouts are
brightening the outlook for global oil demand, the International
Energy Agency (IEA) said on Wednesday, though rising cases in
some major oil-consuming countries show a recovery may be
fragile.
"Fundamentals look decidedly stronger," the IEA said in its
monthly report.
"The massive overhang in global oil inventories that built
up during last year's COVID-19 demand shock is being worked off,
vaccine campaigns are gathering pace and the global economy
appears to be on a better footing."
Citing rising cases in Europe, Brazil and the United States,
the Paris-based watchdog said it remained concerned about new
waves of the virus derailing progress.
Still, the IEA predicted global oil demand and supply were
set to re-balance in the second half of the year and that
producers may then need to pump 2 million barrels per day more
to meet the expected demand.
OPEC and allies like Russia, a grouping known as OPEC+,
would likely prove capable of tailoring its output to demand
whether the virus is tamed or not, the IEA added.
"The bloc's monthly calibration of supply may give it the
flexibility to meet incremental demand by ramping up swiftly or
adjusting output lower should the demand recovery fail to keep
pace."
The IEA said commercial oil stored in OECD countries fell
for a seventh consecutive month in February, signalling a rise
in demand and increased imports in the near future.
Less developed countries faced a steeper climb out of the
demand crater created by COVID-19, the IEA warned, as the
differences between countries with prompt access to the vaccine
and those without become more pronounced.
"Some emerging countries with lower access are in a more
difficult situation, with likely new COVID waves slowing
economic activity and mobility," the IEA said.
"The situation is currently deteriorating sharply in some
large non-OECD oil consumers (Brazil, Iran and India)."
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
Global Oil Supply https://tmsnrt.rs/3mLPrAG
Demand/supply balance https://tmsnrt.rs/3tjhvh5
Oil supply response https://tmsnrt.rs/3garIce
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>