London Evening Standard: Oil price soars on supply fears: “Oil prices have rocketed from $30 at the start of the year on burgeoning demand from China, supply disruptions in Nigeria and terrorism fears in Saudi Arabia and Iraq”: “Three UK power plants, including Coryton in Essex, are up for grabs after Shell kicked off the £1.7bn sale of its Intergen joint venture with Bechtel. Shell is also thought to have received a bid for its £1bn liquefied petroleum gas business from Kohlberg Kravis Roberts.” (ShellNews.net)

Steve Hawkes,

12 October 2004

WORLD oil prices soared to all-time highs again today as concern continued to grow about a supply crunch this winter.

Brent crude hit $51.40 a barrel, up 74 cents, while US light crude rose 77 cents to $54.40. Traders said oil could cost up to $60 within days.

Orin Middleton at Barclays Capital said: 'There is no ceiling right now.'

Oil prices have rocketed from $30 at the start of the year on burgeoning demand from China, supply disruptions in Nigeria and terrorism fears in Saudi Arabia and Iraq.

The Paris-based International Energy Agency said it expected high prices to hit global oil demand next year.

The Agency said oil supply from countries outside the Opec* cartel is set to rise by as much as 1.4m barrels a day over the coming months.

'Barring unforeseen developments, and assuming a much discussed increase in Opec capacity, this should help to alleviate pressure on the supply side,' it said.

The IEA now believes oil demand will hit 82.4m barrels a day this year, up 240,000 barrels on its previous forecast. It has revised down its 2005 forecast by 70,000 barrels to 83.9m a day.

• Three UK power plants, including Coryton in Essex, are up for grabs after Shell kicked off the £1.7bn sale of its Intergen joint venture with Bechtel. Shell is also thought to have received a bid for its £1bn liquefied petroleum gas business from Kohlberg Kravis Roberts.

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