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Crude oil prices’ rise on slowing demand fears may be temporary
VIENNA, Oct 12 (AP): Crude oil prices rose Wednesday, extending their gains from a day earlier on fears
that a recent dip in demand would be short-lived.
Forecasts of a possible shortage of petroleum products into 2006 also sent prices higher, with the
International Energy Agency (IEA) warning that refineries they would need to pump at full tilt to keep pace
with demand.
Light, sweet crude for November on the New York Mercantile Exchange rose 46 cents by midday in
European trading to US$63.99 a barrel.
In New York on Tuesday, the contract had jumped US$1.73 to close at US$63.53 after the Paris-based IEA
said demand would fall for the rest of the year but rebound in 2006.
On London's International Petroleum Exchange, November Brent crude gained 46 cents to US$60.54 a
barrel.
The IEA, the energy watchdog for industrialised countries, cautioned of a prolonged loss of oil production
in the Gulf of Mexico, saying output in non-OPEC supplies in 2005 and 2006 would fall by 300,000-
400,000 barrels per day. It also said its member nations may have to dip into reserves to meet demand.
Demand from Asia's largest energy consumer, China, was also likely to pick up into the new year, the IEA
said.
Iraqis reach breakthrough deal on constitution
BAGHDAD, OCT 12 (AP): Iraqi negotiators reached a breakthrough deal on the constitution and at least
one Sunni Arab party said it would now urge its followers to approve the charter in this weekend's
referendum. Suicide bombings and other attacks killed more than 50 people in the insurgent campaign
aimed at intimidating voters.
Under the deal, the two sides agreed Tuesday on a mechanism to consider amending the constitution after it
is approved in Saturday's referendum. The next parliament, to be formed in December, will set up a
commission to consider amendments, which would later have to be approved by parliament and submitted
to another referendum.
The agreement boosts the chances that the draft constitution will be passed Saturday. Shiite and Kurdish
leaders support the draft and the United States has been eager to see it approved to avert months more of
political turmoil, delaying plans to start a withdrawal of U.S. forces.
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