LyrArc Article Gist
Demand from China and the Middle East alone will increase by about 2 million barrels a day this year, with another 2 million barrels a day increase from other growing economies, the U.S., Europe and Japan not changing much.
This will drive prices according to the International Energy Agency. Supply is not growing enough, consider Iraq, Iran, Venezuela, Mexico, which have stagnant production levels and increasing demand.
Price volatility has been a feature of oil markets with so much uncertainty, including uncertainty of non-OPEC production so that OPEC alone cannot determine oil price levels.
Economic crises in the the US and Europe and prospects of a recession have so far not affected oil prices. If demand continues to grow in places like India, China and the Middle East, then prices will continue to remain high.