With oil prices steadily rising again, the International Energy Agency (IEA) has warned that this could affect global recovery amidst the global recession. The IEA also warn that the demand for oil may also be affected if price continue to rise into the next year.
Oil prices have risen by 77% in 2009 and is now trading at around $79 per barrel with China the driving force behind demand. In the IEA’s monthly report, it forecasts that there will be a 1.6% increase in demand for oil, taking it up to 86.2 million barrels per day.
The IEA added that the global economy was still fragile and demand within developed countries was falling as oil prices began to rise towards the $80 per barrel mark. The head of IEA’s oil industry division, David Fyfe said, “If prices keep rebounding, there’s a risk to the global economy as a whole, even to some of those economies in the Far East and even the Middle East”.
Although there is some concern about oil prices, the IEA also said that global demand would still grow in Q4 this year and that OPEC drilled more oil in October than September.
Add A Comment