Soaring oil prices ‘to hit world economic growth’

Record high world oil prices will cut world economic growth by 0.8 points in 2005 and widen current account gaps both in rich and emerging economies, the International Energy Agency’s chief economist said yesterday.

New production expected to come on stream in oil-producing nations by the end of this year can boost supply in early 2006, but even that would fall short of meeting the demand rise in the short term, he said.