LONDON (Reuters) - Oil prices surged over $47 a barrel on Wednesday on evidence that energy costs are not substantially slowing the economic growth that fuels oil demand and fresh threats by rebel militia against Iraqi oil facilities.
China recorded 21 percent oil demand growth in the first half of the year and crude imports by the world's second-largest oil consumer are up 40 percent year-on-year to the end of July, according to recent data. That indicates Beijing's bid to slow economic growth has yet to make much impact on energy demand.
U.S. oil demand so far this year is up 3.5 percent, preventing inventory builds as rising consumption soaks up extra imports from OPEC suppliers like Saudi Arabia.
We're headed for an energy wall, and the world just pushes the accelerator down farther.