Global demand for oil has soared as supply falls into shortfall after global production fell in 2020. According to a note from Goldman Sachs, after the 7.5% rise in January, further progress is on the horizon in February. The markets generally continue to expect a recovery in demand during 2021. Oil prices rose by more than 7.5% in January and started the month of February with a further increase. The U.S. investment bank expects global demand for crude to return to pre-COVID levels next August as coronavirus vaccination campaigns gain momentum.
The March futures contract for a barrel of WTI crude oil gained 2.6% to $53.55 on the Nymex. April maturity Brent rose 2.4% to $56.35. After a decline caused by the Covid-19 crisis, WTI gained 7.6% and Brent 7.8% last month.
“Higher demand will allow supply to start increasing this year,” the International Energy Agency (IEA) estimated. In its latest monthly report, published on January 19, the agency predicts global production to rise by 1.2 mbd in 2021, after a record drop of 6.6 mbd last year.