news.bbc.co.uk/low/english/world/...t/newsid_640000/640091.stm
Friday, 11 February, 2000, 23:04 GMT
Oil scramble warning
By business reporter Mark Fisher
The International Energy Agency (IEA) says there could be a worldwide scramble to find oil unless oil exporting countries increase their output.
The IEA, an energy watchdog set up by developed nations, gave the warning in a monthly survey that showed stockpiles of oil held in rich countries are dwindling significantly.
The price of oil has been rising relentlessly since the Organisation of Petroleum Exporting Countries (Opec) reduced its output last March.
On Friday, the price of the benchmark Brent crude rose above $28 a barrel for the first time since the Gulf War nine years ago.
It is an uncomfortably high level from the point of view of importers who fear that their economies are starting to suffer.
The IEA says stockpiles fell by 4% at the end of last year, as developed countries drew on these supplies to make up for the shortfall in imports.
Stocks are likely to dwindle further, the IEA says, and this could lead to what it called a scramble to find oil.
The situation is nowhere near as serious as the 1970s when sudden price increases by Opec caused serious damage to the world economy.
But international pressure is growing on Opec to agree to an output increase when its oil ministers meet in six weeks time in Vienna.
The American Energy Secretary Bill Richardson is due to visit Opec members Saudi Arabia and Venezuela, as well as non-Opec exporter Mexico, later this month.
He is certain to ask them to increase production, as the United States is the world's biggest importer.
Good trades. Stockbroker.
Friday, 11 February, 2000, 23:04 GMT
Oil scramble warning
By business reporter Mark Fisher
The International Energy Agency (IEA) says there could be a worldwide scramble to find oil unless oil exporting countries increase their output.
The IEA, an energy watchdog set up by developed nations, gave the warning in a monthly survey that showed stockpiles of oil held in rich countries are dwindling significantly.
The price of oil has been rising relentlessly since the Organisation of Petroleum Exporting Countries (Opec) reduced its output last March.
On Friday, the price of the benchmark Brent crude rose above $28 a barrel for the first time since the Gulf War nine years ago.
It is an uncomfortably high level from the point of view of importers who fear that their economies are starting to suffer.
The IEA says stockpiles fell by 4% at the end of last year, as developed countries drew on these supplies to make up for the shortfall in imports.
Stocks are likely to dwindle further, the IEA says, and this could lead to what it called a scramble to find oil.
The situation is nowhere near as serious as the 1970s when sudden price increases by Opec caused serious damage to the world economy.
But international pressure is growing on Opec to agree to an output increase when its oil ministers meet in six weeks time in Vienna.
The American Energy Secretary Bill Richardson is due to visit Opec members Saudi Arabia and Venezuela, as well as non-Opec exporter Mexico, later this month.
He is certain to ask them to increase production, as the United States is the world's biggest importer.
Good trades. Stockbroker.
