EIA oil report expects oil prices to rise higher in 2010

The latest US EIA forecasts that oil prices are to rise higher later in 2010 as reported in the EIA’s latest Short Term Energy Outlook published yesterday.

EIA expects world oil prices will rise slowly as world oil demand increases because of projected global economic growth, slower growth in non OPEC oil supply, and continued production restraint by members of the OPEC.

Projected world oil consumption increases by 1.6 million barrels per day in 2010. Countries outside of the OECD, especially China, Saudi Arabia, and Brazil, represent most of the expected growth in world oil consumption. Among the OECD countries, only the United States is expected to show significant increases in oil consumption of about 0.15 million barrel per day in both 2010 and 2011.

Economic growth, expanding populations and higher standards of living mean that crude oil demand is set to rise in the future, despite significant improvements in energy efficiency. OPEC expect energy use to increase by more than 40 percent by 2030, however 2008 and 2009 were the first time since 1981 that global oil demand declined in two successive years.

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