Oil Forecast: Instability To Keep Prices High
Instability in the Middle East and North Africa is keeping oil prices up, the International Energy Agency (IAE) has said in a review of the market.
It also said that global oil demand this year was being slightly boosted by the recovery of European economies, while new production was building up fast in a rapidly changing oil market.
The IAE's monthly review raised its forecast for demand for oil around the world this year by 90,000 barrels per day to 91 million barrels per day (mbd).
This would be a rise of 1.1% - or 1mbd - from the level last year, and 1.1mbd in 2014 as the overall economic climate improves.
Oil is currently around $102 a barrel, as speculators await a resolution to the political impasse and debt ceiling debate in Washington.
New production from sources outside the Organisation of the Petroleum Exporting Countries (Opec) is being driven by shale-energy production in the United States.
The agency said that the US had produced 10 mbd of oil in the last two quarters "its highest in decades".
The place taken by the US "in the driver's seat of growth is also a throwback to decades past" it added.
The US is set to be the biggest producer outside Opec grouping by the second quarter of next year.
In July, a billionaire Saudi prince admitted that fracking elsewhere in the world was the biggest threat to his oil-rich nation.
The IEA forecast that the current growth of fracking in the US would make it a bigger producer than Russia, "and that's not even counting biofuels and refinery gains".
Elsewhere, production will also be increased the huge Kashagan oil field, under the Caspian Sea off Kazakhstan, and an agreement between Sudan and South Sudan.
The forecast comes as France's constitutional council rejected a challenge to a law banning fracking for shale gas and oil.
The ruling is a boost for President Francois Hollande, who has opposed the technology alongside ecologist Greens in his ruling coalition - to the dismay of some allies who believe France is sacrificing access to a cheap source of energy.
US-based firm Schuepbach Energy had challenged on four counts a ban introduced in 2011 due to potential risks to the environment, which led to two of its exploration permits being cancelled in southern France.
:: Iraq's prime minister has confirmed that a $6bn (£3.7bn) contract has been signed by his conflict-hit country with Swiss company Satarem to build and run an oil refinery in southern Iraq.