Citing an internal document from the Organization of the Petroleum Exporting Countries (OPEC), Reuters reported Tuesday that the organization lowered its forecast for oil demand growth to 5.6 million barrels per day (bpd) by 2021 from 5.9 million bpd in the January report.
The OPEC + panel forecasts world oil demand at 97.9 million bpd in December 2021 in the base scenario. The oil market deficit is expected to peak at 2 million bpd in May.
In the alternative lower demand scenario, the market is expected to shift to a 600,000 bpd surplus in April 2021 and a 100,000 bpd surplus in December 2021.
WTI rises over 2.5% on Tuesday and it’s testing the $ 55.00 zone, the highest level in a year.