OPEC has improved its forecast for oil demand in 2021. It is expected to increase by 5.9 million barrels per day (to 96.27 million). This is 100 thousand barrels per day more than predicted before.

OPEC expects economic activity to start recovering by the end of the first half of the year, supporting pent-up demand in tourism, travel and hospitality. However, the organization decreased its forecast for demand for the first two quarters of this year.

The report said that the recovery is slowing due to the extension of quarantine restrictions in some countries, as well as due to high unemployment in the United States. However, OPEC noted that increased demand for raw materials this year will not be able to compensate for its shortage in the past, because countries will continue to partially maintain restrictions on movement in the near future.