Concerns over record high crude oil prices

International Energy Agency boss Nobuo Tanaka warned yesterday that there is a risk record oil prices could tip the world economy into recession. Asked whether prices of nearly $118 a barrel could drive the world economy into recession, he said: "Yes, I certainly have some concern."

"High prices definitely dampen demand - it's happening now, definitely it will have some negative impact on economic growth - that's for sure," he told Reuters on the sidelines of the International Energy Forum in Rome. (source: Upstream Online)

The Acting Deputy Secretary of Energy Jeffrey Kupfer in the USA joined in:
"Oil prices are clearly too high. We are not happy with the prices or the direction they're going in," Reuters quoted Kupfer as saying.

Producer countries have blamed the weakness of the US dollar for the strength of the oil market and have said supplies for now are more than adequate. By contrast, Kupfer said fundamentals of supply and demand were a major factor.

"Fundamentals are tight right now ... Our message is take a look at fundamentals," he said on the sidelines of the International Energy Forum in Rome, which brings together producers and consumers. (Source: Upstream Online)