August 12, 2004

World energy markets are so concerned about strong demand and possible disruptions of supplies that oil prices finish higher, even though Saudi Arabia announces it has capacity to pump 1.3 million more barrels each day immediately if needed; low-sulfur crude oil for September delivery settles at $44.80 per barrel in New York trading, up 28 cents; International Energy Agency says world's use of oil will be even greater in rest of 2004 and in 2005 than it previously forecast, increasing pressure on producers to step up output at time when rising oil prices could slow world economic recovery; graph; photos (M)

Albany Passes Budget, Latest in State History After months of inertia, the Legislature finally agreed to a $101.3 billion spending plan, which added $1.2 billion over all to Gov. George E. Pataki's proposal. But officials of the Republican-led State Senate and members of the Pataki administration stressed that the governor's call for the budget's swift passage was not an indication that he actually supports it. The action avoided a possible budget showdown during the Republican National Convention. PAGE B1

Senate Democrats will not oppose Pres Bush's nomination of Rep Porter J Goss as director of central intelligence, but they will use his confirmation hearings to amplify their concerns over fatal intelligence failures under this administration; many Senate Democrats say they are unhappy with what they perceive as Goss's excessive partisanship, but none say they would vote against his confirmation; Sen John Kerry has signaled that he would not make nomination a major campaign issue; privately, some Democrats say nomination puts them in difficult political position, because if they oppose Goss nomination White House would surely cast them as obstructionists who are delaying prosecution of war on terror; recall that in 2002, when they opposed proposal to eliminate some protections for employees of Homeland Security Dept, Republicans accused them of being opposed to protecting nation; Sen Charles E Schumer says he suspects Bush was 'looking for a fight' by nominating politician to top intelligence post; photos (M)

Nicolai Ouroussoff assesses design by Field Operations and Diller, Scofidio & Renfro to transform abandoned High Line elevated freight track from Gansevoort Street to West 34th Street into public park that might encompass public gardens, swimming pool, outdoor theater and food halls; photo; drawings; map (M)

Standard & Poor's 500-stock index declines 3.25 points, to 1,075.79, while Dow Jones industrial average falls 6.35 points, to 9,938.32; Nasdaq composite index drops 26.28 points, to 1,782.42; US Treasury bonds rise; 10-year note ggains 5/32, to 103 25/32; yield slips to 4.27 percent from 4.29 percent; graph; charts (M)