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IEA now expects slower growth in oil demand for first half of 2021

Tuesday's report also said worldwide refinery throughput is expected to recover by 4.5 million barrels per day in 2021 after a significant decrease last year. File Photo by Ekina/Shutterstock/UPI
Tuesday's report also said worldwide refinery throughput is expected to recover by 4.5 million barrels per day in 2021 after a significant decrease last year. File Photo by Ekina/Shutterstock/UPI

Jan. 19 (UPI) -- The International Energy Agency on Tuesday scaled back its 2021 outlook for global oil demand, which continues to be hindered by the coronavirus pandemic.

The IEA said in its outlook that it expects world oil demand to increase by 5.5 million barrels per day to about 97 million barrels this year.

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The updated expectation is roughly 300,000 barrels per day lower what the IEA previously projected for 2021 in December.

"After falling by a record 6.6 [million barrels per day] in 2020, world oil supply is set to rise by over 1 [million barrels per day] this year, with OPEC+ adding more than those outside the bloc," the report states.

"There may be scope for higher growth given our expectations for further improvement in demand in [the second half of 2021]. After holding flat at 92.8 [million barrels per day] in December, global supply is rising this month with OPEC+ due to ramp up during January."

Tuesday's report also said worldwide refinery throughput is expected to recover by 4.5 million barrels per day in 2021, after a decline of 7.3 million barrels in 2020. IEA pointed to a cold snap in Europe and Asia for an increase in diesel and kerosene.

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Oil prices have rallied some this year, with the cost of Brent crude reaching $57 per barrel a week ago, a point not reached since last February. The cost of West Texas Intermediate on Tuesday is around $52.

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