Oil Back Over $54

    March 12, 2005

Oil prices are back over $54 after faster growth of global demand was estimated by the International Energy Agency.

U.S. light crude went up 89 cents to $54.43 a barrel after falling over $1.20 on Thursday. Brent crude rose 44 cents to $53.10 after setting a record with $54.30 on Wednesday.

“The rampant speculation identified yesterday’s sell-off as another buying opportunity,” said Fimat USA energy risk management vice president Mike Fitzpatrick. “Aided by the IEA’s recalculation of demand.”

An article at ABC News says,

“The Paris-based IEA, a watchdog for the Organization for Economic Cooperation and Development, said Friday that it expects world oil demand growth of 1.81 million barrels a day, bringing its forecast for average daily demand to 84.3 million barrels. In raising its demand forecast by 330,000 barrels a day from earlier estimates, the IEA cited a cold snap in late February and early March in the United States and Europe, a sunnier outlook for U.S. economic growth as well as higher demand from China.

Analysts said worries over a March 16 meeting of the Organization of Petroleum Exporting Countries in Iran are easing as oil ministers assured traders in recent weeks that they would keep production at present levels”.

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