Wednesday 14 December 2011

To tame oil prices, follow Saudi's steps: IEA official | Reuters

Major oil producers must follow top exporter Saudi Arabia in increasing output to help tame high prices that threaten global economic growth, the chief economist for the International Energy Agency (IEA) said on Wednesday.

Oil prices, which at $109 a barrel already pose a "major risk" to the fragile global economy, could rise further to $150 in coming years if there is no more investment to boost oil output in the Middle East, said IEA's Fatih Birol.

His comments come ahead of Wednesday's meeting of the Organization of the Petroleum Exporting Countries, where ministers are expected to agree to a new collective output target that legitimizes a big increase in supply over the last six months.

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