WTI tests $66 after IEA says oil demand recovery will outpace growth in supply

“Oil demand recovery will outpace growth in supply,” the International Energy Agency (IEA) said in its latest monthly oil market report published on Wednesday, adding that the demand recovery forecast assumes the COVID-19 situation in India improves.

Additional takeaways

Extra supply is due from Canada, Brazil.

Under the current OPEC+ scenario, supplies will not match expected demand recovery.

OPEC+ has pumped far below the call on its crude.

However, demand recovery is fragile amid India's COVID-19 situation.

Oil glut is gone even as it reduces the demand forecast on India.

Cuts European oil demand for Q1 2021 by 320,000 b/d to 12.7mln b/d.

Cuts 2021 global oil-demand growth forecast by 270,000 b/d to 5.4mln b/d.

Leaves 2H 2021 oil demand forecast largely unchanged.

Cuts America’s oil demand for Q1 2021 by 515,000 b/d to 28.4mln b/d.

OECD oil stocks fell to 2.95bln barrels in march, 1.7mln barrels above the five-year average.

Market reaction

WTI catches a fresh bid and tests the $66 mark on the upbeat headlines from the IEA. The US oil was last seen trading at $65.64, still up 0.62% on the day.