Oil price rises to over $12 a barrel

CRUDE OIL prices broke through the $12 a barrel barrier yesterday, amid speculation about cuts in world supply.

Opec and non-Opec producers are close to agreement on supply cuts, according to a Saudi official, and some key Opec members are expected to meet in Amsterdam today ahead of their full summit later this month.

Meanwhile, the monthly report from the International Energy Agency underlined the fragile state of world oil demand. The IEA cut its forecast for 1999 demand growth to 900,000 barrels per day from 1 million barrels per day.