Anyone see this?
**Crude Oil Rises After IEA Reports '99 Demand to Exceed Supply
New York, April 9 (Bloomberg) -- Crude oil rose 2 percent, its first gain in four
days, after a forecast that global production will fall short of demand this year,
raising expectations that a worldwide glut will end.
World demand this year will rise 1.2 percent from 1998 while production should
slip, provided oil exporters trim output as much as they pledged last month, the
International Energy Agency said in a monthly report. High inventories helped send
crude oil prices to a 12-year low in December.
''When we see those inventories shrink, we're going to need that oil,'' said Bill
O'Grady, vice president, director of fundamental futures research, at A.G.
Edwards & Sons in St. Louis, Missouri.
Crude oil for May delivery rose as much as 32 cents to $16.15 a barrel on the
New York Mercantile Exchange. In London, May Brent rose 29 cents, or 2
percent, to $14.50 a barrel on the International Petroleum Exchange. Prices are up
about 3 percent from a year ago.
The Organization of Petroleum Exporting Countries and other nations will start
cutting output this month in a plan designed to reduce world supply by 2.7 percent.
O'Grady said the consensus opinion among analysts is that the IEA is right in its
forecast.
''If the production cuts are made and the economies of some of these countries
improve, inventories will drop,'' he said. ''You just can't keep this market down.''
Apr/09/1999 10:17
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