Northern chill sends oil price up worldwide

by MALCOLM WITHERS World oil prices began to shoot past the $35 mark overnight as the first cold snap of winter hit the northern hemisphere.

Supply concerns about heating oils in the US, the world's biggest market, helped trigger the rises as the American Petroleum Institute revealed that US stocks had fallen by 55,000 barrels in the week ending 10 November.

US weather bureaux forecasts of lower-than-normal US temperatures over the next two weeks have led to stockpiling of heating oils in both the private and public sectors.

In the north-eastern states of the US, oil stocks are reported to be more than 40% below last year's levels.

Total US stocks of heating oil are 30% below those of last year.

Last night crude futures on the New York Mercantile Exchange were traded at $35.08 a barrel, up 21 cents.

World oil experts have been predicting that crude-oil supplies would exceed demand in the coming months as output rises to 3.7 million barrels a day as a result of earlier decisions by Opec to increase supply.

On Monday Opec ministers meeting in Vienna decided not to add to the series of four increases in output they have made throughout the year.

Their decision led to criticism from US Energy Secretary Bill Richardson about inadequate supply. Opec has predicted that oil will eventually fall to between $22 and $28 a barrel once earlier supply increases impact.

B) Associated Newspapers Ltd., 15 November 2000

http://www.thisislondon.co.uk/dynamic/news/business_story.html?in_review_id=335549&in_review_text_id=278349

-- Martin Thompson (mthom1927@aol.com), November 15, 2000