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Wednesday, 14 April 2010

Oil Prices May Curb Recovery, Agency Warns

The International Energy Agency warned that rising oil prices, which have been flirting with 18-month highs recently, could squeeze economic recovery in the U.S. and other industrialized nations.
The Paris-based agency said Tuesday there was plenty of oil around to sate increasing demand, but it said that higher crude prices could "stall [rich nations'] economic recovery or render it more 'oil-less' than we currently envisage."
U.S. oil prices have eased off the $87 a barrel level hit last week but are still above the $70-to-$80 range that has persisted for many months and gave a semblance of stability to global energy markets. U.S. oil prices, which have risen largely on economic optimism, traded Tuesday midday on Nymex at $83.10, down $1.24, a barrel.