Research group warns of rising oil prices

Jan. 5, 2011 at 3:30 PM
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PARIS, Jan. 5 (UPI) -- An international energy research group in Paris warned Wednesday rising oil prices are threatening the global economic recovery.

Chief Economist Fatih Birol at the International Energy Agency, which represents 28 countries, said in a message, "Oil prices are entering a dangerous zone for the global economy. The oil import bills are becoming a threat to the economic recovery. This is a wakeup call to the oil consuming countries and to oil producers," CBC reported.

Recent data shows import costs for members of the Organization for Economic Cooperation and Development rose by $200 billion by the end of 2010.

Import costs have reached $799 billion for member countries, the IEA said.

"It is not in the interest of anyone to see such high prices," Birol said, suggesting oil importing countries pare back on use of oil and energy producers increase production to lower costs.

February contract crude oil on the New York Mercantile Exchange rose 6 percent in December and is currently hovering near $90 per barrel.

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