| The IEA has agreed with the US government and OPEC, who forecast that global oil demand growth will fall in 2013, despite the low levels of growth this year due to the slowdown in economic activity. The IEA also predicted that oil prices will remain high, despite the weak economy, due to geopolitical tensions between the West and Iran, as well as general political tensions around the whole of the Middle East and Africa region.
“The geopolitical dimension is likely to continue to provide something of a floor for prices. The issue of Iran will likely continue to weigh heavy on the market through the second half of 2012. Moreover, there is a risk that recent progress in restoring output from Libya, Iraq and Nigeria could be jeopardised if recent political and civil tensions worsen.”..............................................Full Article: Source
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