Reuters reports that the International Energy Agency (IEA) said that demand for oil will exceed the output of top producers due to progress in vaccinating the world against COVID-19.

"The anticipated supply growth through the rest of this year comes nowhere close to matching our forecast for significantly stronger demand beyond the second quarter," the IEA said in its monthly report, citing increased pumping from OPEC+ countries.

Output from the OPEC and allies including Russia already lags demand for its oil by 150,000 barrels per day (bpd) and that is expected to widen to a 2.5 million bpd shortfall by year's end, the IEA said.

New waves of infections in Brazil and Thailand and even India were not enough to derail the trend but could continue to affect the market, it added.