IEA warns of petrol shortages as crude oil price leaps
The oil price rocketed to its highest level since the Iraq war six months ago, as the International Energy Agency
warned of possible shortages this winter. The rise could push up UK petrol and heating fuel prices over the winter
months.
Brent crude jumped $ 1.26 a barrel to $ 31.40, for a two day gain of more than $ 2. OPEC shrugged off the rise and
said it will go ahead with the next output cuts anyway. A Saudi official said: "All OPEC will implement the cuts."
The IEA forecasts that global oil demand will rise to record levels in the fourth quarter, as economic activity picks
up and heating fuel sales get a strong seasonal boost. Stocks are running low. Earlier it emerged that US inventories
are down 7 % on a year ago, and European stocks 4 % lower.
Weather forecasts predict a tough winter to rival last year's. That sent oil soaring to $ 34. It fell to just $ 23 in
the aftermath of the Iraq war, on hopes that a newly liberated country would boost oil supplies.
