• Wednesday, 16 May, 2012

IEA sounds oil price alarm

**FILE** An oil pump is seen at dusk in this Sept. 19, 2007 file photo, in Sakhir, Bahrain. Energy futures fell Monday, Sept. 24, 2007 after a tropical depression that moved the Gulf of Mexico late last week turned out to be a dud. (AP Photo/Hasan Jamali, file)

Up and down: oil prices

AP PHOTO/HASAN JAMALI

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By News Wires

 17 January 2011 09:41 GMT

The head of the International Energy Agency (IEA) has warned that current oil price levels are “alarming” and could have a negative impact if allowed to spiral upwards.

With oil prices surging towards $100 a barrel, market eyes are on Opec to see whether the producers group will boost crude supplies to dampen prices.

IEA executive director Tanaka told reporters on the sidelines of an industry conference that Opec "needs to show more flexibility" in increasing oil production according to Reuters. "If the current price continues, it will have a negative impact," he said.

Oil hit a record $147 a barrel in 2008 and there are fears that prices could rise significantly above $100 if Opec does not signal its intent to lift supplies.

However, the oil ministers of Iran, Venezuela and Libya have said they see no need for producers to act if oil reaches $100 a barrel.

Nonetheless, United Arab Emirates Oil Minister Mohammed al-Hamli downplayed the IEA’s concerns, saying that fluctuating oil prices were not a cause for concern. "The price keeps going up and down and all I can say for now is that we are happy," al-Hamli said.

The minister claimed markets continued to be well supplied and added he expected positive growth in demand going forward.

Nymex crude fell below $91.50 a barrel, while Brent crude held above $98 for the fourth session today, supported by a strong equities market and a persistently weak dollar.





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