International Energy Agency: Oil demand will jump


Global oil demand will surge this year due to price decreases, according to the International Energy Agency (IEA). The IEA announced global oil demand will increase far beyond expectations this year, citing the decrease in prices. The IEA revised global oil demand expectations upwards in a monthly report. The demand for this year was revised up to 1.4 million barrels with an increase of 280,000 barrels. "Recent oil market strength of course partly stems from unexpectedly strong global oil demand growth," said the report of the agency that leads the energy policies of developed countries. Oil prices began recovering after decreasing to $45 per barrel in January, which was nearly a six-year low. As of yesterday morning, the price of Brent crude oil was around $65.75 per barrel. Prices, which were $115 per barrel last year, started to collapse in June 2014 after the Organization of the Petroleum Exporting Countries (OPEC) refused to take action to shore up prices in order to defend its market share.