International Energy Agency warns of further oil price rises
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Mon 16th November 2009
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The International Energy Agency (IEA) has announced that the rising prices of oil could bring instability to economic recovery from the credit crunch. With oil prices rising by 70% this year, the unsustainable price growth of oil could disrupt the economy, with less developed countries unable to afford prices of over $80 a barrel.
The IEA has suggested that demand for oil will keep growing as economic prosperity returns and has subsequently raised its global oil demand forecasts for 2009 by 210,000 barrels to 84.8 million barrels a day.
The IEA said that in the US, "the 'real' economy, as opposed to the financial one is struggling to recover" and added that if the government withdrew its stimulus spending measures, the economy could "choke again... and cast further gloom on an already depressed job market".
As oil prices rise it is essential for UK businesses to evaluate how much they could save by encouraging energy efficiency measures. To prevent further instability within the UK economy, it is essential for UK business to have less reliance upon fuel costs and anticipate future fuel price increases. |
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International Energy Agency warns of further oil price rises
