Crude Oil Prices Rally After IEA’s Demand Forecast

Crude oil prices rally after IEA’s demand forecast

NEW YORK, Oct. 12 (Xinhua) Crude oil prices rallied Tuesday as International Energy Agency revised 2005 global oil demand forecast downward, which was smaller than expected.

New York’s main contract, light sweet crude for delivery in November, rose 1.73 dollars to 63.53 dollars per barrel in closing trading.

In London, the price of Brent North Sea crude for November delivery jumped 1.30 dollars to end at 60.08 dollars per barrel.

The Paris-based IEA said Tuesday it anticipated some moderation in the September decline in gasoline demand, which it blamed on retail price spikes and sporadic supply shortages that followed Katrina and Rita. The decline was not as big as some investors had feared.

Global oil demand was projected to increase 1.75 million barrels per day in 2006 because of a rebound from the temporary negative impact of the two hurricanes, according IEA’s Oil Market Report for October.