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The US Energy Information Administration (EIA) has revised the first-quarter price forecast for West Texas Intermediate (WTI) crude, the North American oil benchmark, higher to $56 from $50. 

The bullish forecast is mainly based on expectations for a rebound in the global demand for petroleum liquids, according to oilprice.com. 

Key points

EIA expects global inventory draws will contribute to forecast rising crude oil prices in the first quarter of 2021. 

While the EIA expects oil demand to rise in Q1, the recent rise in COVID-19 cases will continue to limit global oil demand in the first half of 2021.

The US GDP to grow by 5.4% in 2021, leading to energy consumption growth. Global consumption of liquid fuels in 2021 is expected to average 97.8 million barrels per day this year.