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Page added on September 11, 2013
Oil Prices Still Too High for Economic Recovery
Fatih Birol, the International Energy Agency’s chief economist, comments on price of oil. He spoke in an interview today in the Chinese city of Dalian, where he’s attending the World Economic Forum’s Annual Meeting of the New Champions.
“Oil prices are still very high for the fragile economic recovery. It’s high for Europe and also too high for developing Asian countries. It is more than welcome that prices are going down a bit” and providing room for an economic recovery.
“We need to see the economy grow strong in the next quarter to come, otherwise, together with Europe, several Asian countries including China will face difficulties.”
“Oil demand growth is mainly driven by Asia, about two thirds of the global oil demand is coming from Asia. China is leading, followed by India and other Asean countries, mainly driven by increasing car ownership levels in the region.”
8 Comments on "Oil Prices Still Too High for Economic Recovery"
DC on Wed, 11th Sep 2013 4:47 pm
Of course, past ‘growth’ fixed all past problems, overpopulation, pollution, environmental degradation, crime. Sadly, once ‘growth’ stalled, all those problems wed resolved(thanks to all the previous growth of course), were back with a vengeance.
O wait, bloomberg didn’t mention THOSE problems, there only concern is with the *economy* and the high price of sludgy oil.
Well, I guess we know what bloombergs prescription is for what ails us-cheap OIL!
Sure, based on empirical data and past real world experience, cheap oil will fix everything…
J-Gav on Wed, 11th Sep 2013 4:57 pm
“We need to see the economy grow strong in the next quarter …”
No we don’t. We need to see the economy start shrinking in order to make it more in conformity with the resource base it rests upon. And we need to do it in a gradual and managed fashion if that’s still possible.
Sure, what he says is what we ‘need’ for BAU, but that’s not what the future’s going to look like, no matter what we think we ‘need.’ You can bet on plenty of “the-recovery’s-just-around-the-corner” spin in the meantime but when reality bites, it’ll just take a bigger chunk out of our hide if we believe that hokum!
Newfie on Wed, 11th Sep 2013 5:38 pm
Never ending growth is the biggest fairy tale the human race has ever told itself (and actually believed it). It’s even more fantastic than the fairy tales about the Sky Daddy. ROTFLMAO.
actioncjackson on Wed, 11th Sep 2013 6:55 pm
At this point the only thing that can bring prices down is a lessening of demand, which translates to less growth, or shrinkage of economies. There’s simply not enough new field discoveries to keep up with current demand for very long. Saying that oil prices are too high and will cause economies to suffer by not growing, while maintaining the view that huge growth is the answer, is hugely self conflicting. Basically China is asking for new major oil discoveries, something that has proven to be easier said than done.
shortonoil on Wed, 11th Sep 2013 9:58 pm
China has been a net oil importer since about 1970 when Daqing hit a 98% water cut. That was China’s last Giant field. China then became a growing importer. Recently Chinese imports have been falling. China’s imports, as of last month, are now flat. So don’t blame China for high oil prices. The culprit is a little more basic. Its called depletion, and oil prices have but one direction to go. Dream on Bloomberg!
GregT on Wed, 11th Sep 2013 11:09 pm
” It is more than welcome that prices are going down a bit” and providing room for an economic recovery.”
Oil prices may be going down on planet ‘Bloomberg’, but here on planet Earth, the oil price trend continues to rise.
Roman on Thu, 12th Sep 2013 12:07 am
It seems that cars were invented because people didn’t know how to walk or they increase the size of the penis. Who knows.
DC on Thu, 12th Sep 2013 12:23 am
Indeed, China has little to do itself with the price of oil. If it wasn’t going to China, it would be going somewhere else. The only difference would be the distribution of buyers-not there national identity, that is immaterial. Of course, the reflex in the US is always to blame ‘dirty foreigners’ for every little problem the US faces-especially the ones the US itself creates.
The ‘blame China’ trope is running at full tilt of late, whether its ‘hacking’ or the price of amerikas favorite toxic drink, leaded regular gaz-o-line, the blame can usually be traced back to China, somehow by the ever astute and accurate, amerikan mass media.
But the only way jewberg will get there cheap oil, is through demand destruction which will mean more hardship for ‘consumers’. And from here on in, each subsequent ‘recovery’ will likely be weaker than the last, and gas ever more expensive. Each ‘collapse’ will see the cheap gas, being more expensive than the it was the last time, and so on, until the formal economy becomes a distant memory.