Page last updated at 11:41 GMT, Monday, 16 February 2009

Oil up on 'supply crunch' warning

Oil well in Bahrain
Mr Tanaka said he expects demand for oil to rise next year

Oil prices have risen after the International Energy Agency (IEA) said that there could be supply shortages next year once demand picks up.

Nobuo Tanaka, the IEA's executive director, warned there could be a "supply crunch".

US light crude for March delivery rose 65 cents to $38.16 a barrel. Brent oil added 29 cents to $45.10 a barrel.

Crude prices had jumped on Friday on renewed optimism that a US stimulus package would revive the economy.

"Currently the demand is very low due to the very bad economic situation," Mr Tanaka said.

"But when the economy starts growing, recovery comes again in 2010 and then onward, we may have another serious supply crunch if capital investment is not coming."

He said that he expected world oil demand to rise by about one million barrels per day from next year.

Mr Tanaka also urged the oil producers' cartel Opec not to seek a rapid price increase by cutting supply, adding that a lower price "helps the economic recovery".



Print Sponsor


RELATED INTERNET LINKS
The BBC is not responsible for the content of external internet sites

FROM OTHER NEWS SITES
Arab Times Kuwaiti crude drops to $40.18 - 1 hr ago
Reuters U.S. oil slips towards $34, crude stock build in focus - 2 hrs ago
Globe and Mail Total sticks to oil investment strategy - 2 hrs ago
Boston Globe World stocks down as Dow hovers round Nov. lows - 3 hrs ago
Washington Post Oil stays near $35 after big drop overnight - 3 hrs ago



FEATURES, VIEWS, ANALYSIS
Has China's housing bubble burst?
How the world's oldest clove tree defied an empire
Why Royal Ballet principal Sergei Polunin quit

BBC iD

Sign in

BBC navigation

Copyright © 2019 BBC. The BBC is not responsible for the content of external sites. Read more.

This page is best viewed in an up-to-date web browser with style sheets (CSS) enabled. While you will be able to view the content of this page in your current browser, you will not be able to get the full visual experience. Please consider upgrading your browser software or enabling style sheets (CSS) if you are able to do so.

Americas Africa Europe Middle East South Asia Asia Pacific