IEA Warns $100 Crude To Return EU, US Oil Bill To 2008 Level

[Purveyor]

Source: Dow Jones

LONDON -(Dow Jones)- A crude price at about $100 a barrel will bring the oil burden on developed economies to around levels last seen in the crisis of 2008, the chief economist of the International Energy Agency said Monday.

In an interview with Dow Jones Newswires, Fatih Birol said "if we assume that oil prices remain around $100 in 2011, the import bill to in the U.S. will be 2.6%, very close to the level we saw in 2008" of 2.8%.

"In Europe, it would be 2.2%, exactly what we had in the year 2008," added Birol, whose agency acts an energy watchdog for the world's most industrialized nations. The statements put a quantitative assessment on a warning by the IEA that current oil prices--presently close to $100 a barrel--could endanger the economic recovery in industrialized countries.

The comments could ratchet up pressure on the Organization of the Petroleum Exporting Countries to formally increase its production ceiling after the group said Monday in its monthly report that markets would need more of its own crude this year than originally thought.

Despite mounting demand for its oil, OPEC has so far rejected the idea of opening the spigots. Its president, Iran oil minister Masoud Mirkazemi, was quoted Monday as saying: "Some of the OPEC members see no need for an emergency meeting even with prices at $110 or $120."

Read more: http://www.nasdaq.com/aspx/stock-market-news-story.aspx?storyid=201101171108dowjonesdjonline000167&title=updateiea-warns-100-crude-to-return-eu-us-oil-bill-to-2008-level

[DJ13]

1. So just as the economies have a slim hope of a recovery the speculators F us again?

[sakabatou]

2. And again and again and again

[purrFect]

8. growth requires more energy, more demand usually leads to higher prices

the worse is yet to come, when supply can't meet demand. e.g. Peak Oil

[AC_Mem]

3. We need to work towards

areas that we can cut down our dependence on oil. We can do this, and it would be to our benefit!

Maybe it will take the oil companies almost ruining our lives for us to get the rest of the country to lean forward into the future...

Annette

[Kelvin Mace]

5. Already done,

I fear.

Carter warned us 30+ years ago about the need for alternate energy.

We laughed at him, and voted Reagan into power.

Chickens. Home. Roost.

[Historic NY]

4. Its time to establish a food for oil program....they can't eat sand.

[jaybeat]

6. "OPEC has so far rejected the idea of opening the spigots" As if they could...

Because they are desperate to perpetuate the myth that the spigots *can* be opened any further. They are hoping that higher prices will destroy enough demand that they can continue to pretend they are sitting on bigger reserves than they are. The IEA's assessments of global reserves are wildly derided as the product of Kool-Aid fantasies. It's just no body wants to be left standing when the music stops, so they pretend it never will, or that we'll somehow always be able to make more chairs.

[davidthegnome]

7. I paid 3.35 p/g at the pump today

But I also live in rural Maine. Not sure what the prices are in more urban areas.

[RickFromMN]

10. 4 days ago, gas price was $3.099/Gallon, unleaded, in Moorhead, MN, across the river from Fargo, ND

I started talking with the attendant while paying.

He said "they" are expecting gas prices to be $5.00 by year's end.
I'm not sure who "they" are. I hope "they" are wrong.

[davidthegnome]

11. Holy shit

Five bucks per gallon in an urban area would put it up at least 20-30 cents more here. This is a rural area where a whole lot of people commute a good distance to get to work. Hell, they do that frequently in urban areas too, my girlfriend has to drive 45 miles to get to the school where she teaches. I sure as hell hope that "they" are wrong too...

[Odin2005]

9. OPEC is lying, the real reason is that their oil production is declining.