Spring is in the air in the oil market. Production is rising and there is a whiff of slower demand growth in the air. The International Energy Agency on Tuesday heralded an end to the ?demand shock of 2004?.

The energy watchdog of the Organisation of Economic Cooperation and Development?s latest oil market report revised its 2005 demand forecast down slightly. Meanwhile, call for oil produced by members of the Organisation of Petroleum Exporting Countries is seen averaging 28.5m barrels a day during the year, a rise of 400,000 b/d over 2004 but well below March output of 29.1m.