Falling oil stocks could raise prices

PARIS – The International Energy Agency warned yesterday about recent falls in stocks of oil in industrialised countries, saying declining inventories could push up prices in coming months.

“Tighter Opec supply and colder temperatures in the US in February served to perpetuate the recent downward trend in OECD stocks,” the IEA said in its monthly report. Data for January and February show “reason to be concerned” and recent declines in crude as well as gasoline and distillate stocks bring inventories to “levels that were associated with higher and sharply rising prices last summer.”The price of crude oil hit a record US$78 per barrel in mid-2006, but has since fallen back to about US$60.The OECD area covers 30 of the world’s most industrialised countries, including North America, western Europe, Japan, Australia and South Korea.Oil traders respond to changes in risk, with inventories and spare capacity in the production system seen as the two most important safety cushions for the market.Nampa-AFPData for January and February show “reason to be concerned” and recent declines in crude as well as gasoline and distillate stocks bring inventories to “levels that were associated with higher and sharply rising prices last summer.”The price of crude oil hit a record US$78 per barrel in mid-2006, but has since fallen back to about US$60.The OECD area covers 30 of the world’s most industrialised countries, including North America, western Europe, Japan, Australia and South Korea.Oil traders respond to changes in risk, with inventories and spare capacity in the production system seen as the two most important safety cushions for the market.Nampa-AFP