IEA Says OPEC, Energy Efficiency, Investment Key to Oil Price

IEA executive director Claude Mandil issued a statement saying that high oil prices of about 60 usd a barrel and ‘possibly’ more, posed ’significant’ risk to the world economy and growth and that ‘the poorer the country, the higher the burden’.

Mandil declared: ‘More oil, more investment, more energy efficiency — that is how market forces should react to market signals. However, sometimes this reaction is slow. If it does not happen soon, with government impetus when needed, it will happen later, more painfully.’

He said he disagreed with a view expressed recently by several ministers or officials in the Organisation of Petroleum Exporting Countries that there was no need for more oil ‘as the bottleneck was in refining capacities’.

Mandil said: ‘I do not share this view, even if it is difficult to increase refining throughputs, it is useful to have more oil in commercial stocks ahead of uncertain times.’
Forbes