Supply discipline and rebounding economies are set to give oil a chance to break out of the recent range, Goldman Sachs analysts said in a report.
The 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 bbl/d more to meet the expected demand.
The upward revision marks a change of tone from previous months, in which OPEC has lowered oil demand forecasts because of continued lockdowns.
In its latest oil price forecast, Stratas Advisors explores whether oil prices will rebound in the second quarter or continue on the downward trend of the last several weeks.
The week of unchanged prices came with the announcement of oil production increases from OPEC+ among other developments, says Stratas Advisors in its latest oil price forecast.
A few days before the April 1 meeting, OPEC+ delegates had said the group would likely keep most existing oil output cuts in place. But in the 24 hours before the meeting started, sources said discussions had shifted to a possible output increase.
The call by U.S. Energy Secretary Jennifer Granholm was the first call to Saudi Arabia from a U.S. official ahead of an OPEC meeting since U.S. President Joe Biden took office.
Brent's front month spread is back in contango, a situation where the futures price of a commodity is higher than the spot price. This structure of the market encourages storage of oil.
The Joint Technical Committee of OPEC+, which advises the group of oil-producing nations that includes Saudi Arabia and Russia, met on March 30 ahead of a ministerial meeting on April 1 to decide output policy.