Oil market shows signs of improvement but for how long?
The short-term prognosis for crude oil looks exciting. But that may be a mirage.
The approaching summer driving season in the Northern Hemisphere and the lifting of COVID-19 restrictions have stimulated demand.
The Organization of Petroleum Exporting Countries (OPEC) and its allies in the expanded OPEC+ appear confident that with the accelerating vaccination programs and the opening of economies, global oil demand will rise by 5.95 million barrels per day (bpd) this year, despite the devastating COVID crisis in India.
World oil demand is set to average 96.5 million bpd in 2021, OPEC said in its latest Monthly Oil Market Report. This would be nearly six million bpd higher than when the pandemic hit demand in 2020. Global oil demand is projected to accelerate in the second half of 2021, with the outlook for the third and fourth quarters of 2021 set to go up by…