Global demand growth this year will double 2014 levels

Demand growth is up 320,000 b/d to 1.4m in 2015

Product market strength and unexpectedly strong oil demand growth generally propped up global crude prices in June. Brent was pegged at around $63.26/barrel as Petroleum Economist went to press, while WTI was trading at $59.63/b. The latest oil market report from the International Energy Agency (IEA) had something for the bulls and the bears. Global demand growth was revised up 320,000 b/d to 1.4m b/d for 2015 as a whole, signaling that price elasticity is alive and well. As a result, this year’s demand growth will be more than double the unusually weak levels recorded in 2014. During the first quarter demand growth surged to 1.7m b/d, from an average 700,000 b/d in 2014. Demand growth alone