Higher Oil Prices Spurring E&D Activities
The IEA on Wednesday revised downward its demand forecast for 2005, while the EIA did the opposite just the day before. The IEA now expects oil demand this quarter to be 83.7m b/d, while the EIA has a forecast of 84.9m b/d a difference of 1.2m b/d, which is the equivalent of Algeria's entire production.The U.S. EIA recently upgraded its price forecast for oil to $59/barrel through September.
The agencies' supply estimates are not much more in tune. Non-Opec production is expected to increase by 1.4m b/d this year, according to the IEA, while the EIA, expects growth of only 800,000 b/d.