oil prices still too high hurting growth
Last Updated : GMT 07:53:37
Arab Today, arab today
Arab Today, arab today

Oil prices still too high, hurting growth

Arab Today, arab today

Arab Today, arab today Oil prices still too high, hurting growth

Paris - AFP

The eurozone debt crisis, a Chinese slowdown and increased supply depressed oil prices in May but despite fears of a sharp drop, they still remain high and are hurting growth, the IEA said on Wednesday. Recent falls \"accelerated in May in the wake of the deepening eurozone crisis, mounting concern over a slowdown in Chinese growth and rising global oil supplies,\" the IEA said in its latest monthly report. At the same time, however, \"prices remain very high in historical terms and are acting as a drag on household and government budgets,\" it cautioned. The comments come as the Organization of Petroleum Exporting Countries meets in Vienna on Thursday when it is widely expected to leave its production ceiling unchanged at 30 million barrels per day. OPEC current produces nearly 32 mbpd and there are sharp differences within the cartel, which supplies nearly a third of global oil, over what should be done given prospects of a price collapse. Hardline Venuzuela warned on Wednesday that the economic slowdown \"has turned a collapse in oil demand into a clear and present danger,\" while Ecuador and Libya also voiced concern but did not call for a cut. Venezuela Energy Minister Rafael Ramirez told an oil conference in Vienna that a price of $100 per barrel \"represents the minimum necessary\" for the industry, after calling on Tuesday for Gulf producers to cut output. Oil prices have fallen sharply and Brent crude -- the European benchmark -- slumped below $100 for the first time for 15 months in May, the IEA noted. In early trading on Wednesday, New York\'s main contract, light sweet crude for delivery in July, eased 30 cents to $83.02 while Brent North Sea crude for July shed 12 cents to $97.02 a barrel. \"Resurgent worries over the eurozone crisis ... (and a) precarious macroeconomic outlook heightened risk aversion ... and triggered a massive liquidation\" of investor positions,\" the IEA said. Policymakers are focused on managing the crisis in Greece and Spain, it said, and the European Central Bank and the US Federal Reserve were notably reluctant to adopt more stimulus measures, undercutting sentiment, it added. The International Energy Agency, set up to advise developed countries on energy policy, said it was possible that lower demand could lead to lower prices which would then bolster growth but the uncertain outlook required it to be cautious, with risks to the downside. Accordingly, the IEA cut its 2012 global demand forecast to 89.9 million barrels per day (mbpd) from the 90 mbpd given in its previous report, and compared with global supply in May of 91.1 mbpd, up by 0.2 mbpd. Compared with May 2011, global supply was up 4.2 mbpd, 70 percent of which was accounted for by OPEC. The IEA put OPEC May output at 31.87 mbpd, slightly lower than in April but still well above its nominal target of 30 mbpd, with production at OPEC kingpin Saudi Arabia down slightly, along with Iraq. Saudia Arabia, which says it could hike production, would likely keep output at around 10 mbpd in coming months and so cover any shortage if Iranian output is cut by Western sanctions imposed over its contested nuclear programme. Iran produced 3.3 mbpd in May, the IEA said, showing little impact so far from the increasingly tough Western sanctions which Tehran has at least offset in part by offering customers easier payment terms. The sanctions, however, should ultimately cut output by about 1.0 mbpd in the second half of the year as storage facilities are filled, forcing Iran to cut back unless it can find other outlets, the report said. The IEA said concerns over Iran have eased, with the market more confident that it can cope with any reduced supply in view of increased output elsewhere and the recent fall in prices, which now appear to be near bottom. Libya produced 1.42 mbpd in May, up 20,000 barrels, as the country continued to recover production lost last year in the uprising against Moamer Kadhafi. Countries outside the Organization of Petroleum Producing Countries produced 53.1 mbpd in May, up 0.2 mbpd from April and up 1.0 mbpd from a year earlier but stoppages will see the 2012 gain trimmed back to 660,000 bpd, the IEA said.

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

oil prices still too high hurting growth oil prices still too high hurting growth

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

oil prices still too high hurting growth oil prices still too high hurting growth

 



Arab Today, arab today
Arab Today, arab today Jordanian woman reveals her project

GMT 00:46 2017 Saturday ,11 November

Jordanian woman reveals her project
Arab Today, arab today PNG police start removing refugees

GMT 03:00 2017 Friday ,24 November

PNG police start removing refugees
Arab Today, arab today Sophian Yussef reveals suitable decoration

GMT 02:56 2017 Thursday ,23 November

Sophian Yussef reveals suitable decoration
Arab Today, arab today Syria congress to go ahead

GMT 02:24 2017 Friday ,24 November

Syria congress to go ahead
Arab Today, arab today IS media offline for a day

GMT 02:10 2017 Friday ,24 November

IS media offline for a day
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Human form of 'mad cow' disease

GMT 00:11 2017 Friday ,24 November

Human form of 'mad cow' disease
Arab Today, arab today British woman jailed in Iran to appear

GMT 03:19 2017 Friday ,24 November

British woman jailed in Iran to appear
Arab Today, arab today Delhi half-marathon to go ahead

GMT 03:51 2017 Saturday ,18 November

Delhi half-marathon to go ahead
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Mitsubishi Materials units falsified product

GMT 03:24 2017 Friday ,24 November

Mitsubishi Materials units falsified product
Arab Today, arab today 'Robo-taxis' hold promise, and perils

GMT 08:07 2017 Thursday ,23 November

'Robo-taxis' hold promise, and perils
Arab Today, arab today Abeer Sabry reveals reason of “The Flood” success

GMT 08:03 2017 Tuesday ,21 November

Abeer Sabry reveals reason of “The Flood” success
Arab Today, arab today paObama climate envoy slams Trump's rejection

GMT 16:04 2017 Friday ,17 November

paObama climate envoy slams Trump's rejection

GMT 07:56 2017 Monday ,20 November

Singer Jahda Wahba has unlimited ambitions

GMT 08:03 2017 Thursday ,23 November

Srebrenica women cry tears of joy

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation

GMT 11:38 2017 Wednesday ,15 November

Unloved vultures fight for their survival

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts

GMT 09:12 2017 Thursday ,23 November

4 in 10 cancers due to modifiable risk

GMT 10:47 2017 Wednesday ,22 November

The Big Apple bike boom

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday