Oil: the rise in prices continues

The upward revision of global oil demand by the International Energy Agency (IEA) has given new upward momentum to crude oil prices.

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Crude oil prices continue to rise due to more resilient US demand than expected, but also by a potential switch from gas to oil in some European countries.

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At midday on August 12, a barrel of Brent from the North Sea for delivery in October slightly exceeded 100 dollars while the American barrel approached 95 dollars.

Oil instead of gas

Soaring gas prices, accentuated by the war in Ukraine, are encouraging some countries, particularly in Europe and the Middle East, to use oil to produce electricity.

This is indicated in its recent report by the IEA, the International Energy Agency.

As a result, demand for crude is stronger than expected, encouraged by oil prices which have fallen nearly $30 since June.

Another factor that is boosting demand at the moment: the rebound in American fuel consumption.

As proof, fuel stocks have been reduced in the United States by 5 million barrels.

Rising demand

Moreover, despite fears of a global economic slowdown, the agency has revised world oil demand slightly upwards for this year.

The IEA expects demand for an additional 380,000 barrels per day.  

Forecasts that go against those of OPEC, which forecasts a slight drop in demand this year due to a possible resurgence of health restrictions linked to Covid-19 and geopolitical uncertainties. 

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• Energies

• Oil

• Finance

• Economy

• consumption