The International Energy Agency increased demand for oil for the next year and raised its projections on consumption to 2015-a sign for growth in the US.
This increased consumption and predicted consumption has raised oil prices. The IEA report said that although the economy seems to be on the downside, the demand for oil is still increasing. This is because of the increase in the world demand for oil.
Furthermore, the OPEC is meant to meet soon to discuss quotas but analysts believe output will remain the same. Next year however the article says that OPEC will be pressured into increasing supply to meet demands.
Where do you think this increased demand is coming from if other articles comment on low consumer confidence and high unemployment rates?
Even if there is low consumer confidence and high unemployment rates, the demand for oil will increase in the U.S because of an increase in investments due to currency devaluation and the recent Fed policies.
ReplyDeleteEmerging economic powers like China and India are also increasing oil demand in the world.