“Fuel Demand Hits Highest in Five Years Over Low Prices” – International Energy Agency

International Energy Agency, IEA, on Wednesday, August 12, stated that the below $50 per barrel of crude oil price is increasing demand for fuel at its fastest pace in the last five years.

The energy watchdog, in its latest monthly report, said global oil demand would grow by 1.6 million barrels a day in 2015, an upward revision of 200,000 barrels a day from its previous forecast, and would keep rising by 1.4 million barrels a day next year.

The group, which advises industrialized nations on energy, said consumers were responding to lower oil prices while macroeconomic prospects were better than expected.

“The world is now expected to use 1.6 million b/d more fuel in 2015 than the previous year as economic growth consolidates and consumers burn more oil. That’s the biggest growth spurt in five years and a dramatic uptick on a demand increase of just 700,000 b/d in 2014,” the report said.

“On the other side of the equation, global supply continues to grow at a breakneck pace – currently running 2.7 mb/d above a year earlier – despite a collapse in oil prices”

On the other hand, OPEC has vowed to keep its production elevated despite lower oil prices to stop rival producers, notably U.S. light shale oil, from growing.