OPEC concerned oil price may hurt global economy

OPEC is concerned about the potential impact of the near-record price of oil on the world’s economy but has seen little sign that growth has been hit by higher energy costs, the group’s president said on Sunday.

The Organization of the Petroleum Exporting Countries stands ready to pump more oil if needed, but it is not clear whether the group will need to boost output before the end of the year, said OPEC President and United Arab Emirates Energy Minister Mohammed al-Hamli.
We are concerned about the higher price, because we don’t want to go through a recession,” Hamli told Reuters in his first formal interview since taking the presidency at the beginning of this year.

There is so far little sign of any impact on expansion, he said. The global economy looks likely to register strong growth again this year, as it did in 2006, despite high oil prices, he said.

In real terms, adjusted for inflation and the weak dollar, the cost of a barrel is no higher than it was three decades ago, he said.

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