December 15, 2007	Saturday	Zilhaj 4, 1428

LONDON, Dec 14: Oil prices fell on profit-taking on Friday after a brief jump back above $93 here on expectations of higher demand for crude in 2008, traders said.

Both the International Energy Agency and Opec on Friday raised their estimates for global oil demand next year.New York’s main contract, light sweet crude for January delivery, dropped 80 cents to $91.45 per barrel.

Brent North Sea crude for January fell nine cents to $92.03.

“Oil futures were higher earlier on Friday, boosted by an IEA report,” Sucden analyst Andrey Kryuchenkov said.

The International Energy Agency raised its forecast for world oil demand for next year by 115,000 barrels per day because of demand from emerging economies.

But the agency, the developed world’s energy watchdog, lowered its 2007 world oil demand forecast due to lower-than-expected heating fuel consumption in North America and in Europe.

The IEA’s latest monthly report also said that supply-demand balances for the winter had “clearly improved” but warned that the market was still nervous, as indicated by oil prices, which are still around $90.

“Oil at $90 per barrel makes clear that the market is still on edge and is unlikely to relax until the peak weather risks have subsided and a clear trend in Opec supplies is apparent,” the report said.

The Organisation of Petroleum Exporting Countries also raised its estimate for world oil demand growth in 2008, citing transport and industrial fuel needs in developing countries. It held its forecast for world oil demand this year.

“The coming holiday season is keeping the kerosene jet fuel demand healthy worldwide,” Opec said in its latest monthly report.

“Total world oil demand growth in 2007 is forecast at 1.2 million bpd (barrels per day) or 1.42 per cent,” the report said.

But next year, it will rise 1.3 million bpd or 1.54 per cent, a slight upward revision from the cartel’s previous forecast for a gain of 1.53 per cent.

Increasing oil demand was driven largely by developing countries, which accounted for 80 per cent of demand growth, Opec said.

Oil prices had tumbled on Thursday as traders turned sceptical about the success of coordinated central bank action this week aimed at easing tight credit to avert a sharp economic slowdown.—AFP