WTI Crude oil extended a rally above $60 per barrel. The commodity currently trades at $63.45 per barrel, almost unchanged on the day after hitting a one month high. MCX Crude oil futures ended flat at Rs 4749 per barrel. The International Energy Agency or IEA, in its Oil Market Report stated that world oil demand in 2021 is forecast to reach 96.7 mb/d, an increase of 5.7 mb/d from 2020. Despite weaker-than-expected data for 1Q21, annual growth has been revised up by 230 kb/d on average to take account of better economic forecasts and robust prompt indicators. The recovery remains fragile, however, with the number of Covid cases surging in some major consuming countries, noted the IEA. World oil supply rose 1.7 mb/d in March to 92.9 mb/d after shut-in US output recovered from a cold snap. Further gains from the US, Brazil and biofuels are set to lift global supply in April, while producers taking part in OPEC+ cuts continue to limit flows. Non-OPEC+ will see gains of 610 kb/d in 2021 after a 1.3 mb/d drop in 2020. US supply is set to fall 100 kb/d after a 600 kb/d loss in 2020. In a key data, the IEA said that OECD industry stocks fell for the seventh consecutive month in February, by 55.8 mb or 2 mb/d, led by a sharp draw in product inventories (-66.8 mb). At end-February, total oil stocks stood at 2 977 mb.
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