Agency Warns On Oil Inventories Demand

Global oil and fuel inventories are falling and demand is rising, the International Energy Agency said Tuesday in Paris.

The agency’s monthly assessment of the global oil balance said crude and other fuel stockpiles held by the Organization for Economic Cooperation and Development group of industrialized nations fell 1.26 million barrels a day this year, pointing to “the largest first-quarter stock draw (in) over 10 years.”

At the same time, world demand is rising an estimated 1.8 percent this year, or 1.55 million barrels a day, after growing 1 percent in 2006, the agency said.

The agency, founded by the OECD in the wake of the 1974 oil crisis, called on the Organization of Petroleum Exporting Countries to increase production.

“In reality, stock trends and prices are signaling that higher OPEC exports will be needed in the months ahead,” the IEA said.

OPEC’s daily February output averaged 30.2 million barrels, 400,000 barrels less than global consumers need from the cartel, the agency said.