Oil Demand Already Down As Katrina Cuts Supply – IEA

Hurricane Katrina will further weaken world oil demand, already hit by high prices, but it will also tighten inventories of heating fuels as the U.S. enters its peak winter heating season, the International Energy Agency said Friday. The Paris-based IEA said the U.S. could see losses of 23.6 million barrels of distillate output over the next 91 days and total petroleum product losses of 92.6 million bbl. This will leave oil markets tight and vulnerable to further price increases
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