Oil edges further above 76 usd; IEA calls for increased OPEC production

Oil edges further above 76 usd; IEA calls for increased OPEC production

	Published : Fri, 13 Jul 2007 10:37 By : Agencies Print this Story

LONDON (Thomson Financial) - Oil edged further above 76 usd on continuing concerns over tightening global crude supply, as the International Energy Agency (IEA) repeated its calls for OPEC to increase production to help lower prices.

'We have been saying for months that we think that OPEC should increase its production in the second half (of the year). The message is the same,' David Fyfe, one of the IEA's main analysts said.

Oil pushed to an 11 month high of 77.07 usd yesterday, on supply concerns, with prices being boosted further by the large number of non-physical buyers coming into the market looking to take advantage of high summer prices.

'The IEA statement is likely to put a bit more emphasis on crude,' said Veronica Smart, an analyst at the Energy Information Centre. 'The focus seems to have shifted to crude supply from gasoline in this market.'

OPEC have thus far refused to increase output, blaming high oil prices on refinery issues in the US, and speculation in the financial markets.

At 10.14 am, London's benchmark Brent crude contracts for August delivery were up 15 cents at 76.55 usd per barrel. Yesterday, prices touched an 11-month high of 77.07 usd.

Meanwhile, New York crude contracts for August delivery were up 26 cents at 72.26 usd per barrel.

Brent prices, which have gained around 7 pct in the last two weeks, are now within sight of the all-time high of 78.65 usd struck last August.

Recent gains have been supported by the closure of a number of North Sea oilfields for maintenance as well as a pipeline problem in the area.

'The North Sea pipeline problem, together with the maintenance, will impact near-term Brent output,' said Victor Shum, an analyst with energy consultancy Purvin and Gertz in Singapore.

d.sheppard@thomson.com

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