Oil prices at US$72 on encouraging demand growth forecast

12-Oct-09

Oil prices have shown an uptrend, rising on encouraging demand growth forecast- prices in New York rose to US$72.2, while Brent North Sea crude increased to US$70.4. A report by International Energy Agency (IEA) states that as the global economy recovers, demand is expected to improve at the end of 2009 and in 2010. IEA has up-revised its estimate for global oil demand by 200,000 bpd in 2009 and by 350,000 bpd early 2010. Despite the optimistic demand forecast, the report has cautioned that oil prices are unlikely to rise to a large extent. Oil demand in 2010, even after the expected rebound, will still remain below 2008 levels. Mid week, oil prices spiked to levels of US$74 per barrel.