AFP reported that the IEA maintained a forecast for moderate oil demand growth this year saying that subdued economic activity and high prices would restrain upward pressure on consumption. The International Energy Agency kept its forecast for growth in oil demand this year unchanged at 0.8 million barrels per day in its first report since Greece secured a second rescue deal from public and private creditors. In absolute terms, global demand for oil was forecast at 89.9 million barrels per day. The IEA underscored a heady brew of both real and anticipated supply side risks alongside a very evident tightening in actual market fundamentals that has been underway since mid 2010. The IEA said that more prosaic ongoing tightening in the supply and demand balance" had helped to raise prices by 20% since December. Factors that curbed oil supplies included unexpected cuts in the North Sea and Canada along with geopolitical disputes in Africa and the Middle East. The agency's latest report said that it seems appropriate to stand back and acknowledge a big picture that arguably, explains more of the price strength seen in recent months than does ?speculation' about real and perceived geopolitical risks. The report was released days after eurozone finance ministers signed off on more aid for Greece, its second bail out following a rescue package worth EUR 110 billion in May 2010. Analysts said that in Asia, oil prices were mixed in afternoon trading as upbeat economic data and Middle East tensions supported markets while investors took profits from recent gains. New York's main contract, light sweet crude for delivery in April was up a cent to USD 106.72 while Brent North Sea crude for April delivery shed nine cents to USD 126.13. Mr Justin Harper market strategist at IG Markets Singapore said that "The market still remains quite bullish overall, supported by optimism about the world economy."

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