The IEA argue that most suppliers are working flat out to increase supply, but, there has been disappointing growth in new oil fields. At the same time, the oil market has seen increased demand from emerging economies in Asia, Africa and Latin America.
They identified 6 other factors behind high oil prices
- low spare capacity within Opec;
- Political concerns over conflict in Nigeria and Iran.
- Expectations of rising prices because of peak oil theory
- Growth in demand from China, the second largest economy in the world.
- rising oil industry costs;
- tight refining capacity;
- and stockbuilding by refiners seeking to lock in profits.