Barrel price above 81 dollars

Oil prices in global markets exceeded 81 dollars per barrel on Thursday, marking a full moon of record price levels that, according to the International Energy Agency (IEA), are beginning to dampen global demand for black gold.

In the American market, oil rose by 33 cents to 81.63 dollars per barrel. In the London market, the barrel strengthened by 35 cents, climbing to 78.95 dollars. Oil prices are near their highest levels in two weeks, as the recent decline in U.S. heating oil inventories raises increased concerns about potentially insufficient supply this winter. In its regular monthly report, the IEA warned that high oil prices are starting to prompt consumers to switch to cheaper natural gas. They are also increasingly affecting downward revisions of economic growth estimates.  The IEA reported in its monthly oil market report that demand for oil in the fourth quarter of this year is expected to increase by 2.03 million barrels per day compared to the same period a year earlier – 320,000 barrels less than previously forecasted.

According to the latest estimates from the organization, global demand for oil is expected to average 87.64 million barrels per day in the last quarter of 2007, down from the 87.8 million barrels per day estimated in September. U.S. inventory data expected later on Thursday is anticipated to show a decline in distillate stocks, including heating oil, by 400,000 barrels. At the same time, an increase in crude oil stocks by 900,000 barrels and gasoline stocks by 100,000 is expected. Data released earlier this week showed a decline in European oil stocks in September. The price of oil has not strayed far from levels around 80 dollars per barrel since it reached a record 83.90 dollars in September, as investors chose to ignore the announcement from the Organization of the Petroleum Exporting Countries (OPEC) that it would increase production by 500,000 barrels per day next month. The rise in oil prices is also influenced by a new decline in the U.S. dollar. (H)