Reuters reports that the International Energy Agency (IEA) said that vaccine rollouts are brightening the outlook for global oil demand, though rising cases in some major oil-consuming countries show a recovery may be fragile.

"Fundamentals look decidedly stronger," the IEA said in its monthly report.

"The massive overhang in global oil inventories that built up during last year's COVID-19 demand shock is being worked off, vaccine campaigns are gathering pace and the global economy appears to be on a better footing."

IEA predicted global oil demand and supply were set to re-balance in the second half of the year and that producers may then need to pump 2 million barrels per day more to meet the expected demand.

OPEC and allies including Russia, a grouping known as OPEC+, can tailor their output to meet demand whether the virus is tamed or not, the IEA added.