Crude oil prices rise to a five-week highs

14-Dec-05

The International Energy Agency (IEA) has forecast that world oil demand in 2006 would increase by 1.79 million bpd (2.2% increase on the year). The bulk of the increase is expected in the second half of the year, with the U.S. showing the sharpest increases. IEA has predicted that global oil demand growth will recover next year after the warmer weather and hurricanes that temporarily reduced demand late this year. Colder weather in the United States drove natural-gas prices to a new record. Backed by strong natural gas and heating oil futures and higher global demand, crude oil prices rose to a five-week highs on Tuesday. January crude stood at US$61.37 a barrel after touching US$61.95, its highest level since Nov. 4. January Brent futures at London's ICE Futures exchange stood at US$59.35 a barrel. The U.S. Energy Department discarded earlier predictions that oil prices would drop to around US$30 a barrel, but will persist near or above US$50 a barrel for years and force a shift to more fuel-efficient cars and alternative fuels.