Oil Prices on the Rise as Supply Cannot keep up with Demand from Emerging Nations

March 17, 2010 - PRLog -- Oil prices are on the rise as demand for oil is steadily rising and there is not any halt in sight.  Demand for oil is increasing in China, India and other emerging economies.  

The International Energy Agency is predicting that global oil use will grow by 1.8% to 85.5m barrels a day in 2010.  Analysts are anticipating a rise in the price of oil in the $85-$95 a barrel range in the second part of 2010.  This rise in price is a 31% increase than originally estimated.

With China reporting expected growth of around 8%, oil prices may skyrocket as China is the largest consumer of oil after the U.S.  As China begins to consume even more, the demand for oil will rise and as China accounts for about one-third of global oil demand growth, and that demand is not expected to slow.  

Due to growing consumption in China, India and Brazil the predicted global demand is set to accelerate to 86.4 million barrels a day, up from 84.9mb/day in 2009.  With dwindling production in the world’s biggest oilfields, it is predicted that supply will fail to meet demand in 2010.  This lack of supply will likely boost oil to $90/barrel this year and $110 in 2011.

As the population and economy in not only the U.S., but in emerging nations such as China and India continues to grow, the consensus among most analysts and agencies such as the IEA is that oil consumption will rise this year and as the demand increases, prices will soar as supply is limited.

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