The International Energy Agency said that oil producers need to increase supplies as prices are threatening the global economic recovery.
Brent crude rose to a 2 1/2-year high of $127.02 a barrel on April 11 on the ICE Europe Futures exchange as armed conflict in Libya halted exports from the holder of Africa’s largest reserves. The Organization of Petroleum Exporting Countries, responsible for 40 percent of global supply, will meet on June 8 in Vienna to review production targets.
“There is a clear, urgent need for additional supplies on a more competitive basis to be made available to refiners to prevent a further tightening of the market,” the IEA’s governing board said today in an e-mailed statement. “The rise in oil prices since September is affecting the economic recovery.”
The Paris-based agency, an adviser to 28 oil-consuming nations, said that it is “prepared to consider using all tools that are at the disposal of IEA member countries.”
The IEA said March 15 that member governments hold a collective 1.6 billion barrels of emergency inventories that can be used if supply is disrupted.
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