Oil prices could surge again in ‘05, energy agency warns

After last year’s record-breaking rally, crude oil prices might surge again this year if global demand does not slow, because the world still lacks sufficient production and refining capacity, the International Energy Agency said in its monthly report.

Consumption this year is expected to grow 1.7 percent, about half of last year’s 3.3 percent growth. But an unexpected spike in demand from China or sudden cuts in global supplies could send the price soaring again while production, pipelines and refineries remain very tight, said the agency, a Paris-based advisory group to 26 industrialized countries.