After months of unexpected fall, global oil prices outlook for the month of March show a slight rise indicating a rebound following the International Energy Agency (IEA) projection that there could be shortages in supply immediately demands begin to peak.
The agency’s executive director Nobuo Tanaka warned stakeholders of a possible “supply crunch".
Statistics of crude oil market for the Month of March, 2009 revealed that United States’ light crude delivery rose by 65 cents to $38.16 a barrel, while Brent oil prices soared by 29 cents to $45.10 per barrel.
According Tanaka, "Currently the demand is very low due to the very bad economic situation," Tanaka said. "But when the economy starts growing, recovery comes again in 2010 and then onward, we may have another serious supply crunch if capital investment is not coming."
He said that he expected world oil demand to rise by about one million barrels per day from next year.
Tanaka also urged the oil producers’ cartel Organisation of Petroleum Exporting Countries (OPEC) not to seek a rapid price increase by cutting supply, adding that a lower price "helps the economic recovery".