IEA says high oil price could hurt economy

Dr. Fatih Birol, Chief Economist and Head of the Economic Analysis Division of the International Energy Agency (IEA) talks during a press conference for the launch of the World Energy Outlook (WEO) 2008, in central London, on November 12, 2008. The WEO is the latest edition of the annual IEA flagship publication. The WEO-2008 provides analysis to help policy makers around the world assess and address the challenges posed by worsening oil supply prospects, higher energy prices and rising emissions of greenhouse gases. AFP PHOTO/Shaun Curry

SHAUN CURRY

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By Wire reports

 26 October 2009 17:25 GMT

Higher oil prices are a “significant risk” to global economic growth, according to Fatih Birol, chief economist of the International Energy Agency.



Crude oil futures have jumped 81% this year and rose to a one-year high of $82 per barrel on 21 October.

Global economies will expand 3.1% next year after a 1.1% contraction this year, the International Monetary Fund said on 1 October.

“With the strong rebound of the economy, we will see high prices, especially at this juncture, as a significant risk to the recovery efforts,” Birol said in an interview at a Coaltrans conference in London today.

Global oil demand may rise by 700,000 barrels per day next year after falling…

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