Bloomberg the Company & Products

Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Oil Prices a Major Threat to Europe’s Economy, IEA’s Birol Says

Don't Miss Out —
Follow us on:

Feb. 18 (Bloomberg) -- Oil prices are acting as a brake on the global economy, and harming Europe in particular, the International Energy Agency’s chief economist said at a conference in London today.

Europe will need to spend 500 billion euros ($668 billion) on oil imports this year, about 200 billion euros more than average levels, if oil prices remain near current levels, the IEA’s Fatih Birol, said in London at the start of International Petroleum Week.

“Prices are very high,” he said in a Bloomberg Television interview. The “current level of oil prices is a major impact on the global economy, but especially for Europe.”

Asked by reporters if IEA members are considering a release of emergency stockpiles, Birol said the agency doesn’t “discuss stocks just when prices are rising. We do it when there is a supply disruption.”

The IEA’s annual World Energy Outlook report, due later this year, will focus on U.S. oil supply, Birol said.

IEA is a policy adviser to 28 industrialized nations, most of whom are net oil importers.

More than 80 percent of oil projects worldwide have been delayed by about three years because of technical challenges and security issues, Birol added. “We will see more and more delays in delivering production.”

Brent crude oil futures traded near $118 a barrel today on the ICE Futures Europe exchange in London.

-- With assistance from Guy Johnson Francine Editors: Stephen Voss, Andrew Reierson

To contact the reporter on this story: Grant Smith in London at gsmith52@bloomberg.net

To contact the editor responsible for this story: Stephen Voss at sev@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.