Global demand estimated to escalate, despite rising oil prices

30-May-05

Crude oil prices are likely to stay aboveUS$50 a barrel, not only for the year, but well into 2006. Despite an estimated fall in demand growth from China, growing global demand will remain unabated in the face of rising oil prices. Oil climbed 6.6 percent last week, its biggest weekly gain in five. Crude oil rose to US$51.85 a barrel in New York as U.S. refiners boosted gasoline output before the summer holiday season. Spare crude oil production capacity all across the globe has recently diminished, and is projected to remain triggered by geopolitical risks : continued insurgency in Iraq and growing political unrest in oil-producing countries like Nigeria and Venezuela