Record-high demand for oil from, among other things, a strong holiday season and the reopening of China has pushed oil prices to their highest level in six months in August.

And further price increases may be on the way, predicts the International Energy Agency (IEA) in a report according to Bloomberg News.

Oil demand has increased particularly in China, which accounts for 70% of demand growth this year, while developed countries accounted for the remainder of the increase.

”Oil demand is rising at a record high, supported by a strong summer flying season, increased oil consumption for power generation and rising Chinese petrochemical production,” writes the IEA according to Bloomberg News.

In June, global fuel consumption averaged 103 million barrels per day, and the IEA expects the figure could be even higher in August.

Along with record demand, Saudi Arabia and the Organization of the Petroleum Exporting Countries and Allies (Opec+) have cut oil production output, further tightening supply in the oil markets.

According to Bloomberg News, this has attracted widespread criticism from several countries, who warn that a new rise in inflation will jeopardize the global recovery.

Earlier this week, the price of a barrel of the European benchmark Brent crude oil rose to over 88 dollars. This is the highest level in more than half a year.

Since then, oil prices have slowed down slightly again. On Friday, a barrel of the European reference crude, Brent, costs USD 86.49, while a barrel of US West Texas Intermediate (WTI) oil trades at USD 82.85.

On Thursday, prices were USD 86.94 and USD 83.52 per barrel respectively.

(Translated using DeepL with additional editing by Simon Øst Vejbæk)