IEA: Goodbye oil glut thanks to OPEC+ and recovery

IEA: Goodbye oil glut thanks to OPEC+ and recovery

PARIS: A glut in global oil markets is being worked off as the world economy begins to recover from the COVID-19 pandemic and as OPEC and its allies restrain production, the IEA said Wednesday. The International Energy Agency raised its expectations for the recovery in oil demand after the International Monetary Fund increased its forecasts for global growth this year. "This improved outlook, along with stronger prompt indicators, has led us to revise up our 2021 global oil demand growth forecast," said the Paris-based body with advised oil consuming nations. It now expects world oil demand to rise by 5. 7 million barrels per day (bbd) to 96. 7 million bbd, following last year's drop of 8. 7 million bpd. OPEC on Tuesday also raised its 2021 demand forecast to 96. 5 million bbd. Oil demand was hammered last year as many countries shut down swathes of their economies in a bid to slow the spread of COVID-19. That caused a glut in supplies, but the so-called OPEC+ group that includes heavyweight producer Russia, sharply cut output last year to reduce that and counter the plunge in prices that briefly saw some turn negative as storage ran short. That glut