Global oil supplies will grow more slowly than expected over the next five years, the International Energy Agency (IEA) has predicted.

Spare capacity in the world system would fall to "minimal levels" in 2013 amid rising demand from developing countries and supply problems, it said.

As a result the IEA cut its supply forecast by 2.7 million barrels per day (bpd) to 95.33 million bpd.

US crude rose following the report and closed at $140.97 a barrel in New York.

In recent days, crude oil prices have pushed to record levels near $144, driven by supply concerns and strong demand in the Middle East and Asia. ... Read full article