10th November 2011
The Guardian's Larry Elliott reports that the IEA view that the current average price of $102 a barrel means the global economic recovery is at risk.
The IEA told a news conference this week that the global economy is in a danger zone because of these stubbornly high costs and believes that only a high level of investment from oil producing can ensure reliable and cost effective supplies. Not so, say the oil producers. The risk is default and downturn and there is no need to invest.
Opec said on Wednesday that it was not overly concerned by under-investment by its member countries: "It is expected that economic growth in 2012 in the Middle East and Northern Africa region will be stronger than in 2011, mainly due to the massive infrastructure and industrial developments in Saudi Arabia, and robust growth in Iraq," it said in a statement.