Europa: IEA on Rapid Rise in Oil Prices

The International Energy Agency is concerned about a rapid rise in oil prices. But it remains optimistic about the outcome of the Copenhagen climate summit.

The executive director of the International Energy Agency (IEA) is concerned a rapid rise in oil prices could hurt economic recovery.

Crude oil futures surged to a 2009 high above $75 a barrel on Wednesday. It was boosted by optimism about a global economic rebound.

The IEA advises 28 industrialized economies. It said in a monthly report last week it increased its estimate for global oil demand for 2010. It’s up to 1.42 million barrels per day, that is, 150,000 barrels higher than its previous projection.

Oil producer group OPEC also raised its forecasts for world demand.

[Nobuo Tanaka, IEA Executive Director]: 
„We are very much concerned about this kind of over-activity, as everybody. Suddenly energy securities is a big issue.”

Tanaka says the economic crisis was an opportunity to reach an agreement at the Copenhagen summit on climate change in December.

[Nobuo Tanaka, IEA Executive Director]:
„From our analysis, this economic crisis provided us with a window of opportunity of moving towards successful conclusions in Copenhagen.“

Negotiators from developed countries and emerging nations have been wrestling with possible changes to the Kyoto Protocol.

(NTDTV)