Global economy not strong to absorb oil price at $100/barrel —IEA


Global economy not strong to absorb oil price at $100/barrel —IEA

OPEC, OILBy Joseph Oso

THE Energy International Agency IEA, yesterday cautions that the world economy cannot afford an oil barrel price hitting $100 per barrel.

The IEA Executive Director Fatih Birol, pointed out that the slowdown in economic growth hinders the increase in China’s demand for oil.

Oil prices fell amid weak demand and adequate supplies for half-year in 2019 and are currently trading at levels of $65 per barrel, for Brent crude.

In an interview with Bloomberg TV during which he spoke about issues related to Iraq and oil, Birol said Iraq’s stability is very important.

READ ALSO: Oil dealer docked over alleged N42m fraud

His comments were made after the US assassinated on January 3 the Iranian Revolutionary Guards Corps’ (IRGC) Quds Force Commander, Qassem Soleimani, in an airstrike in the capital, Baghdad.

Trade war between the world’s two largest economies, the United States and China, is close to reaching a solution, as the first phase of the agreement is expected to be signed within few days.

Meanwhile, fears continue to loom over the negative outcome in the world’s economy if crisis persists.

Economists at Credit Suisse noted in a report that. “A global supply shock would be an unwelcome development, but we would not expect it to lead to an imminent recession.


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