Vigilance is still the order of the day when it comes to oil despite a recent drop in prices, the International Energy Agency (IEA) says in its latest report on the world oil market. “The market needs time to adjust,” the IEA said in its October monthly oil report. “If everything runs smoothly then we will get through the winter without major disruptions … But for the moment the market remains on edge and prices are responding accordingly.”
The IEA is forecasting world oil demand to average 75.7 million barrels a day this year, up from 74.7 in 1999, but fourth quarter demand is seen growing nearly three million barrels a day to 78.4 million as the northern winter begins to bite.
The agency warned on October 4 that low stocks in some areas, particularly of heating oil, had led to volatility in the market, and said continuing high prices could jeopardize global economic growth.
Figures released in the monthly report showed that domestic heating oil prices, excluding tax, rose between 72% and 96% in European G7 countries in the 12 months to September.
Find on the IEA web site:
• Oil Information 2000, IEA 2000.
• Oil, Gas, Coal and Electricity quarterly statistics, IEA/OECD
©OECD Observer November 2000