Energy agency lifts need for oil

LONDON – Opec will need to pump more oil than previously expected to meet rising world demand and cover a shortfall from other producers such as Russia, the International Energy Agency said yesterday.

The agency, an adviser to 26 industrialised countries, also said it expected no early resolution to concerns over Iranian supply and lost output in Nigeria that have helped push crude prices towards record highs this week. US crude oil has risen to almost US$70 a barrel as violence in Nigeria cuts supply and demand grows.Most members of the Organisation of Petroleum Exporting Countries are already pumping crude close to full capacity.Higher than expected use in the Middle East and Asia Pacific prompted the IEA to raise its estimate for world demand this year to 85,1 million barrels a day in 2006, up 300 000 bpd from a previous estimate.While increasing the “baseline” demand estimate, the IEA trimmed a forecast for oil demand growth in 2006 to 1,47 million bpd from 1,49 million bpd.This year’s forecast is still above last year’s level of 1,05 million bpd.Because of higher demand and lower supply from non-Opec, the producer group will need to pump 29,4 million barrels per day this year, 400 000 bpd more than expected last month.The IEA trimmed an estimate for growth in supply from outside Opec to 1,15 million bpd and said outages are delaying an output resurgence into the second half of the year.- Nampa-ReutersUS crude oil has risen to almost US$70 a barrel as violence in Nigeria cuts supply and demand grows.Most members of the Organisation of Petroleum Exporting Countries are already pumping crude close to full capacity.Higher than expected use in the Middle East and Asia Pacific prompted the IEA to raise its estimate for world demand this year to 85,1 million barrels a day in 2006, up 300 000 bpd from a previous estimate.While increasing the “baseline” demand estimate, the IEA trimmed a forecast for oil demand growth in 2006 to 1,47 million bpd from 1,49 million bpd.This year’s forecast is still above last year’s level of 1,05 million bpd.Because of higher demand and lower supply from non-Opec, the producer group will need to pump 29,4 million barrels per day this year, 400 000 bpd more than expected last month.The IEA trimmed an estimate for growth in supply from outside Opec to 1,15 million bpd and said outages are delaying an output resurgence into the second half of the year.- Nampa-Reuters