"Downgrading the forecast, IEA said the oil demand would rise 0.6% or 540,000 barrels per day on average during 2008-2014. In its latest Medium-Term Oil Market Report, the Paris based agency said the oil demand would rise to 89 million barrels per day in 2014."
OK. Crude prices declined to around 32 dollars per barrel and now are back up around 70 dollars.
There is no short term shortage of crude. Oil producers and traders are impounding the stuff all over the world, holding it in waiting for the steadily rising price to come to the level they want. Speculation? The "S" word? OK. Let's call it "judicious investment."
Demand is down just about everywhere at the moment, so more and more oil has to be withheld from the markets to keep the price going up. This is very "judicious investment."
How high will the price of crude go this summer? That depends on the skill of the producers and investors. pl