IEA Says Oil Demand to Rise in 2006; Cuts 2005 Figure

The International Energy Agency, an adviser to 26 oil-consuming countries, said oil demand will accelerate and rise 2.1 percent next year, a sign that prices at $60 a barrel have done little to restrain growth.

“We’ve seen oil go from $20 a barrel to $60 a barrel without any government saying they will take serious steps to curb demand,” said Edouard Carmignac, chief investment officer for Carmignac Gestion, which manages about $3 billion in Paris, 38 percent of that in energy stocks. “We may have to see a price of $80 or $90 a barrel to see any real impact. That could very easily happen, and that’s when it will really start to hurt.”