Oil prices may shock again as winter looms

October 23 2000 Singapore - Consumers battered by this year's oil price shock may not have seen the worst. Fresh pain for them, and the world economy, could be in store if a big winter chill hits US or European consumers already running low on stocks of heating fuel, analysts say.

And the world's most volatile commodity market could pile on agony again if an anticipated gap in Iraqi export loadings in December lasts more than a few days. "The oil market reacts on fears of what might happen. The key question is always: how likely are these events?" said Leo Drollas at the London-based Centre of Global Energy Studies.

A lengthy surge higher appears unlikely for now, but a price spike of some weeks is firmly within the realms of possibility. World oil production - at full tilt everywhere outside Saudi Arabia  has little margin for error ahead of a northern hemisphere winter that will see the highest demand in history. Reuters

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-- Carl Jenkins (Somewherepress@aol.com), October 23, 2000