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Citing an internal OPEC document, Reuters reported on Tuesday that the organization lowered its oil demand growth forecast to 5.6 million barrels per day (bpd) for 2021 from 5.9 million bpd in January’s report.

Additional takeaways

“OPEC+ panel sees global oil demand at 97.9 million bpd in December 2021 under the base scenario.”

“Under the base case scenario, the oil market deficit is expected to reach a peak of 2 mln bpd in May.”

“Under the alternate, lower demand scenario, market is expected to flip into 600,000 bpd surplus in April 2021 and 100,000 bpd surplus in December 2021.”

“OPEC+ experts see oil stocks dropping in every month of 2021, falling by a total of 406 mln barrels in 2021 under the base case.”

Market reaction

Crude oil prices showed no immediate reaction to this report and the barrel of West Texas Intermediate (WTI) was last seen gaining 2.5% on the day at $54.84.