Slow rollout of Covid vaccines in Europe delaying rebound in oil demand – IEA

Slow rollout of Covid vaccines in Europe delaying rebound in oil demand – IEA

A rebound in the world's appetite for oil has been delayed by the sluggish rollout of coronavirus vaccines across Europe, according to the International Energy Agency.The global oil market watchdog said a recovery in oil demand would be “fragile” in the first half as the year, before a rebound in the second half as economies begin to return to normal.Oil demand is on track to decrease by 1m barrels a day in the first quarter compared with the end of 2020, when demand was already far lower because of the economic fallout of the pandemic.IEA, which advises major world economies, said: “Renewed lockdowns, stringent mobility restrictions and a rather slow vaccine rollout in Europe have delayed the anticipated [oil demand] rebound.”But the second half of the year will look brighter for oil producers, according to the Paris-base agency's latest monthly oil report. It predicted oil demand would climb this year by 5.4m barrels a day to daily average of 96.4m barrels. This is still below the pre-pandemic peak of almost 100m barrels a day.Higher oil prices are also highly likely in the second half of the year as the Opec continues to keep a tight lid on production, according to