Oil price impact still to come says IEA

[ozymandius]

The International Energy Agency today gave warning that the world economy "has yet to feel the full force of this year’s increase" in oil prices.

The comments came after crude futures hit a fresh record high of $65.14 in New York overnight.

The IEA's monthly report for August said oil prices had risen to historic highs on a "series of supply disruptions, geopolitical issues, and an active hurricane season and strong refiner demand for light sweet crude".

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However, the energy watchdog said the world economy "is still largely responding to last year’s rise in price", suggesting that consumers and industry should be prepared for further increases in energy costs.

more...

http://business.timesonline.co.uk/article/0,,16849-1730750,00.html

[phantom power]

1. I think they're deluded, if they think increased inventory will fix this.

World demand for oil is begining to exceed world supply. It's as simple as that. No amount of inventory buffer is going to change that fundamental dynamic.

[Javaman]

2. "has yet to feel the full force of the bushco* deathstar"