The global COVID-19 vaccine roll-out is putting oil fundamentals on a stronger trajectory for the year, with both supply and demand shifting back into growth mode following 2020’s collapse, according to the International Energy Agency’s January 2021 monthly oil market report. A price rally is gathering pace. Brent rose to $57/bbl and WTI to $53/bbl, reflecting a boost in demand on a cold snap in Europe and Asia and OPEC+ supply cuts that look set to keep markets in deficit. Nevertheless, as recently renewed lockdowns in a number of countries weigh on fuel sales, IEA revised down its global demand forecast by 600, 000 b/d for first-quarter 2021 and by 300,000 b/d for 2021 as a whole. World oil demand is now expected to rise by 5.5 million b/d this year following 2020’s 8.8 million b/d contraction. This recovery mainly reflects the impact of fiscal and monetary support packages […]

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