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Politics : Rat's Nest - Chronicles of Collapse -- Ignore unavailable to you. Want to Upgrade?

To: Wharf Rat who wrote (5037)	11/10/2006 6:37:37 PM
From: Ron	Read Replies (1) \| Respond to of 24207

IEA Sees Jump in World Oil Demand By SELINA WILLIAMS and SPENCER SWARTZ November 10, 2006 3:17 p.m. LONDON -- The International Energy Agency said Friday that global energy demand will jump in the fourth quarter due to U.S. consumption, while demand for oil produced by the Organization of Petroleum Exporting Countries will rise to its highest level in four years. The energy watchdog said global oil demand will rise 2.6% from the year-earlier period, when demand was crimped by mild weather and the impact of Hurricane Katrina in the world's biggest energy market. In its widely watched monthly oil market report for November, the IEA said global demand for OPEC oil is expected to rise 1.6 million barrels a day in the fourth quarter from the third quarter because of weaker output from non-OPEC countries. The IEA trimmed its outlook for 2006 global oil demand growth to 1.1% from 1.2% in its October report. Demand growth for 2007 was unchanged at 1.7%, the agency said. The IEA revised its fourth-quarter forecast for non-OPEC supply to 51.7 million barrels a day, a decrease of 200,000 barrels a day, and pegged 2006 growth at 700,000 barrels a day, saying weaker supplies in the North Sea, Russia, China, Brazil and Angola will counter "upward adjustments for North America, Australia, Azerbaijan and non-OPEC biofuels." The Paris-based IEA's outlook points to tighter market conditions and higher energy prices just as OPEC oil-production cuts take effect. OPEC's output cuts, aimed unofficially at supporting oil prices back to the $60-a-barrel level, were sharply criticized by some oil analysts because of the onset of winter in the Northern Hemisphere and uncertainty about the strength of the global economy. "To make an output cut in the fourth quarter is clearly going to tighten the market, the extent of which depends on how much output is actually cut and that's an uncertain situation," said Lawrence Eagles, the editor of the IEA's monthly oil report. Overall, the IEA expects OPEC's Doha deal to bolster oil prices by cutting 1.2 million barrels a day of actual output that will yield a physical reduction of 600,000 barrels a day to 900,000 barrels a day. "Depending upon compliance by non-Gulf members, some 600,000 to 900,000 barrels a day might be removed from the market as a result of the Doha decision," the report said. Write to Selina Williams at selina.williams@dowjones.com1 and Spencer Swartz at spencer.swartz@dowjones.com2 URL for this article: online.wsj.com