High oil prices remain a threat to economic growth, warned the International Energy Agency (IEA) ahead of Opec's biannual meeting. Increased levels of oil production from Opec nations have succeeded in pushing oil prices down from the elevated levels reached at the beginning of the year. Several members of the group are expected to push to curb output at the meeting which officially starts in Vienna today. "Memories are indeed short: crude prices remain very high in historical terms and are acting as a drag on household and government budgets in OECD [Organisation for Economic Cooperation and Development] and emerging markets alike," said the IEA in its latest monthly report. The organisation represents OECD countries. Prices have been falling on weaker crude demand in struggling economies across Europe, Asia and North America. High production allowed OECD inventories to rise to 2,643 million barrels in April, said the IEA. China, the world's biggest importer of oil, has also made use of high Opec production to increase its stocks. In its report, the IEA rejected calls made by Opec members Venezuela and Iran to cut the voluntary production ceiling imposed at the group's last meeting. "Higher Opec production sits against a backdrop of tight end-2011 inventories, stubbornly high oil prices and persistent uncertainty over non-Opec and Iranian supply for this summer," said the report. Opec is producing at levels close to 32 million barrels per day (bpd), well above its 30 million bpd ceiling. Led by Saudi Arabia, the group reacted to an increase in the oil price that drove Brent to levels of US$125 a barrel, as concern over the stand-off between Iran and western powers gripped the market. Increased Saudi production compensated for a reduction in Iranian exports, while the resumption of talks over Iran's nuclear programme has reduced the risk premium on oil prices. Brent now trades at about $97 a barrel. Rafael Ramirez, Venezuela's energy minister, yesterday told a meeting in Vienna a price of $100 per barrel "represents the minimum necessary" for the industry, having on Tuesday called on Gulf producers to cut output. Iran has this week vehemently rejected suggestions the Opec ceiling may have to be raised to accommodate current production. By The National
GMT 12:09 2018 Monday ,26 November
Black Friday less wild as more Americans turn to online dealsGMT 15:07 2018 Sunday ,18 November
Refugee host countries discuss UNRWA's financial crisisGMT 17:22 2018 Wednesday ,31 October
Russia climbed to 31st place in Doing Business-2019 ratingGMT 16:53 2018 Wednesday ,17 October
"Putin" We need for collective restoration of Syria's economyGMT 14:02 2018 Friday ,12 October
Govt to announce incentives package for Overseas PakistanisGMT 18:26 2018 Saturday ,06 October
Dubai attracts Dh17.7 billion in foreign direct investmentGMT 09:02 2018 Friday ,21 September
Economy of Georgia demonstrates "strong signs of recovery"GMT 09:03 2018 Wednesday ,24 January
German investor confidence surges in JanuaryMaintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Maintained and developed by Arabs Today Group SAL.
All rights reserved to Arab Today Media Group 2021 ©
Send your comments
Your comment as a visitor