DAVOS: Oil prices causing concern says International Energy Agency

DAVOS: Oil prices causing concern says International Energy Agency
Major oil consumers such as the US, Britain and Japan are concerned about high prices and will meet today to discuss the issue, the International Energy Agency chief said yesterday.

The price of oil, which hit a record high earlier this year, has alarmed consumer countries because of the risk it may slow economic growth. The US has been urging the Organisation of Petroleum Exporting Countries, which meets on February 1, to raise supply to lower prices.

Ministers and officials from the United States, Japan, the European Union and Britain are scheduled to hold a meeting today in Davos on oil and the IEA, adviser to 27 industrialised nations, will also attend.

"The ministers are very much concerned about the current level of price and they want to share their views," IEA executive director Nobuo Tanaka said.

"We are always calling for producing countries to take the market signs more carefully and I wish - these are the member governments of the IEA - will take a similar view."

Oil prices have fallen to around $88 a barrel from the record high of $100 earlier this month. Even so, prices remain high and oil inventories in industrialised countries too lean, Tanaka said.

"It is a very high price, showing the market is still tight," Tanaka said.

The IEA is concerned about the strength of the world economy, one of the main themes of Davos, and said oil producers could help the situation by pumping more.

"The oil producing countries can contribute to the situation, and also the consuming countries by doing more work in energy efficiency."

Via: Gulf Daily News

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