As the Oil Glut Drains, So Does Confidence About Demand Rebound

Excess oil inventories built up during the Covid-19 pandemic have been drained almost completely with demand picking up as vaccine programs are rolled out across the U.S. and Europe, helping to boost road traffic. But notes of caution remain in the latest reports from the world’s major oil forecasting agencies.

The International Energy Agency, the U.S. Energy Information Administration and the Organization of Petroleum Exporting Countries all agree that the oil stockpiles built up in the developed nations of the OECD have all but disappeared, as producers have maintained discipline, while demand has picked up from the depths of 2020.