News

March 12, 2010

An Increase In Energy Demand From China Helps Maintain The Strength Of The Oil Price

By Eithne Treanor

The oil market welcomes any news of an increase in energy demand and this week, the Chinese delivered this much-needed boost to the market, and helping to maintain the strength we’ve seen in the oil price. This has been the second week of solid growth on the market and in early trading on Friday, the oil price was holding above US$82.

The stability witnessed in the oil price in recent months is keeping the oil producers content. They have long advocated the US$70-80 price range and have felt no pressure to adjust production as long as prices remain on the high side since the beginning of 2009.  This week saw oil above US$83 briefly, the highest since early January this year. The OPEC President and minister of non-renewable resources from Ecuador said he sees no need to adjust production. “Right now there is no change...