‘Phenomenal’ Demand Supporting Oil

As concerns about the glut of oil in the world continues to weigh, questions have been raised over why the price of the crucial commodity hasn’t fallen even further. For one analyst, the answer comes down to “phenomenal” demand.

Oil was trading slightly higher Wednesday, with Brent crude around $55.60 a barrel and U.S. West Texas Intermediate at $47.80. Both are some way off their year-to-date lows of around $46 and $42 respectively in March.

This comes despite the possibility of a last-minute deal over Iran’s nuclear program, which has pushed prices lower over recent days amid expectations that an agreement would see an influx of Iranian crude on the market.