OPEC said in its latest monthly market report that due to the recovery of the global economy, OPEC expects that demand for oil will increase in the second half of 2021.

Vienna-based OPEC said in a report released on Thursday that it expects oil demand to increase by 5.9 million barrels per day, and total consumption will reach 96.3 million barrels by 2021.

OPEC said: "At the same time, the oil demand in the second half of 2021 has been adjusted upwards to reflect the expectation of a steady economic recovery and the positive impact of vaccination efforts."

Industrial fuel demand is better than expected

On the supply side, OPEC's production in February fell by 650,000 barrels per day to an average of 24.85 million barrels per day.

The Organization of Super Petroleum Exporting Countries (OPEC+), composed of producers from non-member countries including Russia, agreed earlier this month to extend the current level of production cuts to next month.

With the support of Saudi Arabia's continued voluntary commitment to provide 1 million barrels per day, the group will cut 7.2 million barrels per day from the market.

OPEC data shows that the Kingdom of Saudi Arabia has made significant cuts. Saudi Arabia produced 8.15 million barrels per day in February, compared with 9.08 million barrels per day last month.

In the case of tight supply from OPEC+ countries, oil prices have soared. The international benchmark Brent crude oil and West Texas Intermediate crude oil, which track US crude oil grades, are about 30% higher than the beginning of the year. Editor/Xu Shengpeng