Oil supported by IEA forecasts<\/p>\n
Agence France-Presse, London<\/p>\n
World oil prices rose on Wednesday, finding further support in
\ndemand forecasts from the International Energy Agency, alongside
\nkeen Chinese demand, analysts said.<\/p>\n
New York's main contract, light sweet crude for delivery in
\nNovember, rose 37 U.S. cents to US$63.90 per barrel in electronic
\ntrading, after gaining $1.73 on Tuesday.<\/p>\n
In London on Wednesday, the price of Brent North Sea crude for
\nNovember delivery advanced 38 U.S. cents to $60.46 per barrel.<\/p>\n
\"Crude futures rose after the IEA forecast strong global oil
\ndemand for next year, as the US recovers from recent hurricanes
\nand Chinese demand revives,\" Sucden analyst Sam Tilley said.<\/p>\n
Market sentiment remained positive on prices after the IEA had
\nreduced on Tuesday its forecast for growth of global oil demand
\nthis year by a lower-than-expected 90,000 barrels per day (bpd)
\nto 1.26 million bpd, dealers said.<\/p>\n
\"This was backed up by news that, according to government
\ndata, crude imports into China rose 4.8 percent year-on-year in
\nSeptember, after falling in August, despite the high cost of oil
\nat present,\" Tilley said.<\/p>\n
The upward trend in prices \"goes against the idea of demand
\ndestruction caused by the high prices, as China's economy
\ncontinues to grow\", he added.<\/p>\n
Demand destruction gained currency this month as oil prices
\nplunged by more than 11 percent, since smashing record levels
\nabove $70 per barrel in the wake of Hurricane Katrina in August.<\/p>\n
Global oil demand in 2006 was forecast to grow by 1.75 million
\nbpd, the IEA said Tuesday, owing to a rebound from \"the largely
\ntemporary impact of (hurricanes) Katrina and Rita and a recovery
\nin Chinese demand\".<\/p>\n
Hurricane damage closed off 1.2 million barrels per day of oil
\nproduction in the U.S. Gulf region in September, the IEA said,
\nadding that the natural disasters had a \"substantial\" effect on
\nreducing demand.<\/p>\n
Crude futures notched up historic records in August, striking
\n$70.85 in New York and $68.89 in London, on supply concerns as
\nKatrina tore through the U.S. Gulf Coast, ravaging U.S. energy
\nproduction.<\/p>\n
Almost 71 percent of Gulf crude production remained offline on
\nTuesday because of hurricane damage, while seven U.S. refineries
\nremain shut down.<\/p>",
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