The Organization of Petroleum Exporting Countries (OPEC) this week improved its forecast for global oil demand in 2021 amid expectations of a recovery in growth. 

The organization now intends to increase production in the coming months.

The monthly report forecasts an annual increase of six million barrels per day, slightly higher than the organization's previously updated March forecast.

Such an increase will raise global demand to 96.5 million barrels per day in 2021, after demand deteriorated last year due to restrictions imposed to contain the outbreak of the coronavirus.

OPEC said, "It is expected that oil demand in the second half of 2021 will be positively affected by a stronger economic recovery than expected last month, with the support of stimulus programs and further easing of closure measures to contain COVID-19."

An additional reason for optimism later this year is accelerated vaccine campaigns. 

The oil-producing countries that are part of the "OPEC Plus" alliance, which also includes Russia and other countries, decided in April to gradually back off the production-cutting measures that were initially taken to support prices.

The reason for this step is to increase optimism with the acceleration of vaccination campaigns against the Corona virus.

OPEC production increased by 0.2 million barrels per day last month, which is just over 25 million, according to indirect sources mentioned by the report.

The bulk of the growth was due to increased production in Iran.

At a time when Iranian production is still far below the production levels recorded by the country years ago, Tehran is holding talks in Vienna to salvage the international agreement concluded in 2015 under which the United States agreed to lift sanctions on the Islamic Republic in exchange for imposing restrictions on Tehran's nuclear program, before withdrawing from it in 2017.