Oil prices are on the rise again as the International Energy Agency is the latest forecaster to increase their expectations for China oil demand. Yet the IEA went far beyond just increasing demand expectations for China and they said that the demand growth that we have seen so far is astonishing. The IEA beat all the other forecasters by predicting that world demand will increase by 70,000 barrels a day to 86.6 million barrels or close to 1.6 million barrels more than a year ago.
Their comment that Chinese demand surged by an "astonishing" 28% year-on-year in January has captured the imagination of the marketplace. That led to the IEA astonishing forecast for a growth in China demand to increase by 130,000 barrels a day to 9 million barrels a day, representing an increase of 6.2% from 2009.
Of course, despite all of these rising demand expectations, is China on an unsustainable path?
Click here to read more about whether China is on an unstainable path.
