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Strategies & Market Trends : Strictly: Drilling II -- Ignore unavailable to you. Want to Upgrade?

To: Frank Pembleton who wrote (6186)	1/8/2002 1:21:55 PM
From: Frank Pembleton	Respond to of 36161

EIA Raises 2002 Imported Crude Oil Price By $1.25/Bbl 13:10 GMT-05:00 Tuesday, January 08, 2002 WASHINGTON -(Dow Jones)- The U.S. government's main energy-market forecaster revised upward Tuesday its forecast for imported crude oil prices this year by $ 1.25 to $19.94 a barrel, citing global supply cuts. Prices for domestic benchmark West Texas Intermediate - which are about $3.50 to $4.00 more costly than imported crude - are expected to rise to $25-$26 a barrel by the end of 2002 and remain in about that range through 2003, according to the Energy Information Administration's latest short-term energy outlook. The latest price projections are a decline from average 2001 prices of $25.95/ bbl for WTI and $22.05/bbl for imported crude, but they're substantially higher than the agencies expectations last month. The Organization of Petroleum Exporting Countries decision to cut its oil supply quotas by 1.5 million on Jan. 1 and pledged of cuts from non-OPEC producers "will result in oil prices moving up gradually from the average levels seen in December over the course of 2002," the EIA report says. This month's report includes EIA's forecasts for 2003 for the first time, indicating average imported crude oil prices will rise $2.69/bbl, or 13.4%, to $ 22.63/bbl in 2003 amid higher economic and oil demand growth. The EIA projects world oil demand will rise 700,000 b/d, or 0.9%, this year, to 76.5 million b/d and 1.3 million b/d, or 1.7%, next year to 77.8 million b/d. The agency revised its estimate of 2001 world oil demand up by 100,000 b/d in the latest report. With OPEC cutting quotas, world oil supply is expected to drop 500,000 b/d this year to 76.4 million b/d but jump 2.0 million b/d in 2003. Despite non-OPEC pledges to cooperated with OPEC in curtailing supply, non-OPEC supply is still expected to grow about 1.0 million b/d this year. (This story was originally published by Dow Jones Newswires) Copyright (c) 2002 Dow Jones & Company, Inc. All Rights Reserved