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“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.