On Tuesday, OPEC raised its forecast for growth in world oil demand this year on expectations that the epidemic would subside, and encouraged its members and allies in their efforts to support the market.

As predicted in the monthly report of the Organization of Petroleum Exporting Countries, demand will increase by 5.95 million barrels a day, or 6.6%, in 2021. This means an increase of 70,000 barrels a day compared to last month.

The spread and intensity of the COVID-19 outbreak is expected to decrease with the expansion of ongoing vaccination programs. Greater mobility is expected, with social distancing requirements and travel restrictions drastically reduced.

The prospect of recovery strengthens OPEC and its allies’ thinking to revise last year’s record oil production cuts.

Oil rose to $ 64 a barrel after the report released on Tuesday. Backed by the expectation of economic recovery and OPEC + supply restriction, prices rose to pre-epidemic high levels this year.

OPEC made a small upward revision to its 2021 demand forecast last month, but steadily lowered its forecast from the expected 7 million barrels in July 2020.

Assuming that the impact of the epidemic will be largely controlled at the beginning of the second half of the year, the group raised its 2021 world economic growth forecast from 5.1% to 5.4%.

OPEC + agreed on April 1 to gradually ease oil production cuts from May.

Production has increased in some countries, such as Iran, which are exempt from voluntary cuts due to US sanctions. These parties, especially Iran, pumped more products in March, increasing the group’s production by 200,000 barrels per day to 25.04 million barrels per day.

OPEC + cut a record supply of 9.7 million barrels last year to support the market. Most of these restrictions persist even after the April 1 decision.

OPEC + will hold its next policy meeting on April 28th.

Rival producers are also increasing supply, but OPEC kept its non-OPEC output growth forecast at around 1 million barrels in 2021. Despite the recovery in prices, US shale oil production appears to have declined.

With high demand and stable non-OPEC supply, OPEC raised its global demand forecast for crude oil to 27.4 million barrels this year. This allows for an increase of 200,000 barrels compared to last month and higher average OPEC production in 2021.