"Global oil demand is expected to return to pre-COVID levels towards the tail end of 2022, but the recovery will be uneven. Asia is clearly the driver of growth," IEA Executive Director Fatih Birol said

World oil demand growth in 2021 remains unchanged from last month’s assessment, showing growth of 6.0 mb/d despite some offsetting revisions.

Wide spreads between the price of LNG in end-user markets in Asia and Europe and feedgas prices based on the US Henry Hub have been incentivizing robust export activity from the US Gulf and Atlantic coasts.

For 2021, world oil demand is expected to increase by 6.0 mb/d, unchanged from last month’s estimate, to average 96.5 mb/d.

"Under the current OPEC+ production scenario, supplies won't rise fast enough to keep pace with the expected demand recovery," the IEA said. "The widening supply and demand gap paves the way for a further easing of OPEC+ supply cuts or even sharper stock draws."

India's power demand was heavily impacted during the Q1FY21 lockdown (bringing all economic activity to a standstill), falling 15.5% Y-o-Y during Q1FY21 and 7.8% Y-o-Y during 1HFY21.

In 2021, world oil demand growth is expected to increase by about 6.0 mb/d y-o-y, representing an upward revision of about 0.1 mb/d from last month’s report.

The positives offer hope, but we need to remember that the environment remains challenging, complex and uncertain, with the market volatility we have witnessed in the last two weeks of March a reminder of the fragility facing economies and oil demand.

“We must emphasize in strong terms: cautious optimism, cautious optimism, cautious optimism.”

Current oil demand of 94 million b/d, rising to 99 million b/d in 2022.