World demand for oil is set to increase

-------------------------------------------------------------------------------- PARIS World demand for oil, which amounted to 75,5-million barrels a day in the third quarter, will increase by more than 2million barrels a day in the fourth quarter and in the first quarter of next year, the international energy agency forecast yesterday. Demand would then fall in the second quarter of 2001, it said in a monthly report.

Demand for oil by countries in the Organisation for Economic Cooperation and Development rose by 1,3% in October from the figure for October 1999 to 48-million barrels a day, the agency said.

Since 1997 overall demand for oil had risen on average by 2million barrels a day or overall by about 2,1-billion barrels, 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.

World production of oil had amounted to 78,6-million barrels a day in October, marking an increase of 460000 barrels a day.

Supplies from countries belonging to the Organisation of Petroleum Exporting Countries (Opec) increased in October by 460000 barrels a day to 29,5million barrels a day, owing mainly to oil from Saudi Arabia. Opec production, excluding production by Iraq, had amounted to 26,5-million barrels a day.

The price of crude oil had remained high and volatile in October depending upon development of the crisis in the Middle East. Because stocks were low, the market was affected by the weather, demand for heating oil and events in Iraq, the agency said. Sapa-AFP.

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-- Martin Thompson (mthom1927@aol.com), November 10, 2000