Interestingly, demand for oil worldwide is soft right now. So much so that the International Energy Agency lowered its forecasts by nearly 200-thousand barrels a day for the rest of 2014. This may very well be why oil prices have been hovering around 100-dollars a barrel, in spite of conflict in so many key oil producing areas of the world.
As the EIA said, “Oil prices seem almost eerily calm in the face of mounting geopolitical risks spanning an unusually large swathe of the oil producing world.”
Not only is demand soft in the US and Europe, but adding to the softness is China’s slowing economy.
Where this gets dicey is for oil producers carrying a high debt load. Prices aren’t rising as much as development costs, which could spell disaster for some.