The International Energy Agency (IEA) has forecast that oil demand will hit an all time high this year.

This comes after recent news that oil prices went up to $87 per barrel, the highest it has been in the 18 months since October 2008.

The IEA has reported that due to a big increase in global oil demand including a substantial 20pc rise in China, the price of oil will in turn go up and could threaten the UK and Europe’s economic recovery following the recession.

There is speculation that the price of oil will rise even further due to potential political conflicts between the United States and Iran.

Some analysts have disagreed, predicting that oil will drop to $65 per barrel in the summer and hover at around $70 until the end of the year, stating that oil supply is rising in tandem with demand. However, the majority verdict seems to support the IEA’s predictions.