IEA sees risk of recession if oil stays high

LONDON (Reuters) – The head of the International Energy Agency said on Wednesday there was a risk of global recession if oil prices stayed around the current level and hurt emerging economies.

Nobuo Tanaka, head of the agency which advises 27 industrialized countries, also said the supply and demand balance in the oil market is tight, leaving consumers vulnerable to a fresh surge in prices.

“If it continues, this level of price, there is a risk of recession,” Tanaka told Reuters in an interview.

“It very much depends what will happen if high prices affect the emerging economies, China, India and the Middle East. Still their growth is very robust, so we don’t see any indication of slowing down.”

Reuters