Oil Prices to Remain Above $110 a Barrel, IEA’s Birol Says

Following are comments on crude oil, natural gas and the nuclear industry from Fatih Birol, Chief Economist at the International Energy Agency. He spoke today at a conference in Ankara.

On the crude price:

“In the coming months and years, it will be a surprise to see oil prices dropping below $110.”

On the impact of oil on the economy:

“The high prevailing prices of oil which are around $110 per barrel is possibly the greatest risk to the global economic recovery. These high prices reduce the contribution of countries such as China to global economy.”

“Increasing oil and natural gas prices are a significant risk for developing countries such as Turkey. Even Saudi Arabia, despite the fact that it is an oil producing country, admits that such high oil prices are a risk for the global economy.”

On Japan:

“The Japanese government said two weeks ago that the share of nuclear power in electricity generation would decline and that they would take the necessary steps to assure this. After the earthquake, France and Germany also made similar comments to reduce the share of nuclear. These steps could lead to serious negative ramifications. These steps could also have negative impact on the climate. Nevertheless, the share of nuclear in energy generation in China, South Korea, India and hopefully Turkey will increase in the future.”

On natural gas:

“Natural gas was a quiet revolution that affects us all. New energy products will affect the geo politics of energy.”

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