World Oil Prices Rise

[chlamor]

World Oil Prices Rise

By: Sujata Rao

Tue Mar 15, 2005 6:16 AM ET

LONDON (Reuters) - World oil prices rose on Tuesday despite the possibility of an OPEC output rise, as top producer Saudi Arabia said more supplies would be needed to meet a substantial increase in demand later this year.

U.S. light crude futures rose 22 cents a barrel higher to $55.17, within striking distance of last October's all-time high of $55.67. London Brent was 23 cents a barrel up at $53.89.

<SNIP>

Naimi's comments follow a report by the International Energy Agency (IEA) last week which raised its oil demand growth forecast for 2005 by 290,000 bpd to 1.81 million bpd.

SUPPLY-DEMAND

Analysts say markets' muted reaction to Naimi's proposal to raise OPEC's output also reflects concern that global demand is continuing to race ahead at a time the cartel has only limited spare capacity.

http://maconareaonline.com/news.asp?id=10175