Emerging market demand to drive up oil price, HSBC

The price of oil will continue to rise into next year, on the back of developing market demand, according to HSBC Private Bank.

The company's head of global strategy Fredrik Nerbrand believes growth in oil-use in emerging markets will outstrip the decline in developed world demand, which he claims will continue. "From a supply perspective, discoveries of oil reserves have been declining since their peak in 1980, leading us to believe that the inelasticity of supplies will persist even as demand continues to grow," he says. "In our view, this will inevitably lead to a shortage in oil, supporting higher prices." He adds: "Throughout the global economic slowdown, demand for oil has proven resilient; consequent...