Oil prices hurt global economy

BAKU, Azerbaijan, July 9 (UPI) -- The increasing trend in energy prices could threaten the stability of global markets despite moves by the OPEC president.

Oil prices slumped below $40 per barrel as the world economy sank into recession in late 2008. With economic analysts predicting slow signs of recovery, however, prices have rose sharply to settle around $62 in recent trading.

Jose Maria Botelho de Vasconcelos, the president of the Organization of Petroleum Exporting Countries and energy minister for Angola, said in the latest meeting of the oil cartel that oil prices were considered fair.

The OPEC president said current oil prices are "balanced" as he saw signs of economic recovery. The oil cartel said it would like to see prices reach $75 per barrel by the end of the year.

But energy analysts from the Cascade Policy Institute in Oregon told Azerbaijan's Trend news agency rising energy prices are damaging in the fragile economic climate.

"Higher oil prices could certainly hinder economic growth and recovery," said Cascade's Todd Wynn.

Oil prices are expected to increase modestly during the summer months and level off after September, but as the economy improves, those prices could shoot up to $100 per barrel, analysts say.