The International Energy Agency (IEA) today said that it is more likely to boost its projections for oil demand that cut them. The IEA’s bullish outlook is driven by robust global gasoline market and strong demand for crude from India.
The IEA said in its report that demand growth for crude in the first three months of this year was 200,000 barrels per day better than forecast. The improved demand was mainly due to India, which according to the agency saw the largest volume growth globally.
The IEA has left its forecast for oil demand unchanged despite the strong first quarter but it expects an upward revision due to gasoline demand growth.
The robust outlook for oil demand should further boost prices, which have made a strong come back since February. Canadian investors may want to consider Horizons BetaPro NYMEX Crude Oil Bull Plus (ETF) (TSX: HOU). The fund, which seeks daily investment results that equal to 200% the daily performance of the NYMEX light sweet crude oil futures contract for the next delivery month, has already gained more than 87% in the last three months alone. And given the outlook for oil demand, HOU could extend its gains in the coming months.
