Warning of winter fuel shortages

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THURSDAY NOVEMBER 09 2000 Warning of winter fuel shortages The International Energy Agency raised fears of international fuel shortages this winter as oil demand approaches its annual peak.

The IEA, a forecaster for 25 industrialized nations, said in its monthly report that depleted inventories and a limited amount of spare capacity from oil producing nations would make periodic shortages "inevitable".

This year demand had risen by 3.4 per cent in August, and it had advanced moderately in September and October.

Since 1997 overall demand for oil had risen on average by two million barrels per day, driven by strong growth of the North American economy and recovery of economies in Asia and in other emerging regions. The increase in demand had resulted in massive reductions of stocks, and in price volatility, the agency said.

Fears that oil refineries will not be able to make enough fuels to replenish depleted inventories has pushed the price of oil up by 30 per cent in London compared with the same period last year.

In the last year the Organization of Petroleum Exporting Countries (Opec) has boosted oil output quotas four times in a bid to lower prices.

"With spare capacity low in both production and refining and distribution, prices remain on a hair-trigger," the IEA said.

Benchmark Brent crude oil prices were down 3 cents at $30.79 a barrel in early London trading

http://www.thetimes.co.uk/article/0,,33044,00.html

-- Martin Thompson (mthom1927@aol.com), November 09, 2000


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