The IEA says higher oil prices will hurt global recovery

The IEA warned yesterday that rising crude oil prices could prove a drag on global economic recovery this year, as commented in it’s monthly oil report yesterday. With oil already topping the $100 per barrel mark as political instability in the Middle East adds to upwards pressure from rising commodity prices, the worldwide “oil burden” is set to hit 4.7 per cent of total economic output this year, up from 4.1 per cent in 2010. “The combination of higher prices, emerging inflationary pressures and instability in the Middle East is not a healthy one.” the IEA’s monthly oil report, published yesterday, said. “Under current assumptions for global GDP, oil price and oil demand, the global oil burden could rise to 4.7 per cent in 2011, getting close to levels that have coincided in the past with a marked economic slowdown.” The IEA also increased its forecast of global demand for oil in 2011 to 89.3 million barrels per day, its fifth increase in as many months, as economic growth recovers, particularly in emerging economies such as China. OPEC and Oil Output in 2011 Separately, OPEC also raised its global demand growth estimate, citing economic growth and cold weather. But with political tensions in Egypt roiling global crude markets, OPEC members countries are unwilling to boost oil output until bulging global inventories are reduced, a tough stance that will provide little relief from oil prices that have hit two year highs. OPEC output should increase to halt higher oil prices – IEA The age of cheap oil prices is over, comments IEA Chief Brent oil price ends week over $99, OPEC defends supply Crude oil prices shoot closer to $100, oil traders pile in Oil prices reverse path and climb higher after EIA data WTI oil prices in 2011, most bet $100 plus oil is ahead OPEC signals that oil prices may need boost under $65 OPEC would consider raising output if oil prices hit $95 mark Brent oil trading at $97, IEA says high prices to continue WTI oil trading firm at $91, Iran says $100 not unrealistic Brent oil price trading firm over $98 on weaker US dollar WTI oil futures under $89 ahead of weekly EIA oil data Brent oil trading steady at $95 amid firm US dollar WTI oil firm at $92, investors bet prices will trade higher WTI oil trading firm over $91 amid higher US oil data Brent oil price nears $95, crude market looks bullish Brent oil price firm over $91 ahead of OPEC meeting Crude oil prices hit 2 year highs, traders eyeing $100 oil Brent oil price closes over $91 mark, $100 oil for 2011? Dollar Index strength may tumble oil prices in 2011

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The IEA says higher oil prices will hurt global recovery