PARIS, Oct. 20 (UPI) -- Though there are concerns about the European economy, oil producers shouldn't scale back production, an International Energy Agency official said from Paris.
David Fyfe, the oil industry and markets division head at the IEA, said world oil markets were tight because of slow production from the North Sea and Canada and the loss of production from war-torn Libya.
The Organization of the Petroleum Exporting Countries in June left official production quotas in check despite concerns high energy prices could slow economic growth. The IEA called on its members to release oil from strategic reserves to offset the loss of production from Libya.
Nevertheless, Fyfe was quoted by the Platts news service as saying "we don't think that this is a market (in which) producers should be looking to scale back supply."
He said the IEA expected oil demand to increase by as much as 1.3 million barrels per day in 2012. A slumping economic scenario for members of the 34-member European Organization for Economic Cooperation and Development could erase the growth forecast, however.
"If we are heading toward a double dip in the OECD demand growth will be wiped out next year," he said.
