No relief in sight from huge oil demand, tight capacity squeeze

Amid cold waves and the unabated appetite of China and the United States, the slowdown in global oil demand in 2005 hoped for just a few months ago seems increasingly unlikely, and the lack of production capacity threatens to keep oil prices under pressure.

The International Energy Agency, the energy forum linked with the Organization for Economic Cooperation and Development, has again revised upwards its forecasts for oil demand this year.

The IEA forecast in its monthly report Friday a 2.2 percent rise in global demand to an average 84.3 million barrels per day.