Thursday, September 10, 2009

IEA Forecasts Increase in Global Oil Demand

Global demand for oil is increasing gradually. The forecast was made by the International Energy Agency (IEA) its monthly report published on Thursday. This has been third month in a row, IEA has increased its forecast for global oil demand. IEA on August forecasted that global demand in 2009 and 2010 will be 84.4 million barrels per day and 85.7 million barrels per day respectively. However, the Paris-based organization’s recent forecast suggests an increase of 500,000 barrels per day in global oil demand in 2009 and 2010. No doubt, increase in global oil demand suggests stronger world economy and it seems that economic recession is getting over very soon.

After the new forecast of increase in oil demand came out, crude-oil prices in global market has been increase by $1 to over $72 a barrel. Price hike in crude-oil was also fueled by the decision of Organization of Petroleum Exporting Countries (OPEC) that it would not increase the oil output.

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Wall Street Journal