Oil prices near $100 a barrel are still a threat to a slowing global economy. The International Energy Agency said yesterday that the world is likely to consume less fuel than it forecast earlier.
IEA's Executive Director Van der Hoeven told reporters at a news conference in the Malaysian capital that Brent crude this week dropped to a 16-month low below $96 a barrel before recovering to around $99, well off a peak of more than $128 in March but not low enough to stimulate, rather than hinder growth.
Increased supply from OPEC producers had helped ease the price, she said. There was a record production in "OPEC" in May, its highest level since 2008 as Saudi Arabia has kept production high in spite of lower prices. Saudi Arabia has pumped 100,000 barrels per day extra in May and according to a survey conducted by "Reuters", Saudi production will reach 10.1 million barrels per day, the highest level in decades. The Kingdom said it is targeting an oil price of $ 100 a barrel, but is unlikely to cut production at the moment.