CORRECTED-UPDATE 3-INTERVIEW-High oil price slows China, U.S. demand- IEA

Thu Apr 21, 2011 8:47am GMT
 

(Clarifies in first and ninth paragraph that OPEC should be prepared to raise output around June, not needs to raise output)

* Sustained oil price of $100/bbl may lead to repeat of '08 downturn

* OPEC should be prepared to boost output in June or July

* Japan nuclear crisis will help ease global gas supply glut (Edits)

By Fayen Wong

SHANGHAI, April 20 (Reuters) - High oil prices have hurt demand in top consumers China and the United States, and OPEC needs to be prepared to raise output around June to stem further price rises, the International Energy Agency's executive director said on Wednesday.

The IEA has already warned that high oil prices are threatening to slow global economic expansion, which would in turn erode the pace of growth in fuel demand.

A sustained price of $100 or more for the rest of 2011 would cause demand destruction similar to 2008, Nobuo Tanaka told Reuters in an interview. Then, fuel demand fell as the world economy reeled from the impact of the global financial crisis.

"There is a six-month lag for the world economy to fully show the impact of high oil prices. But if they stay at current levels, the consequences will be bad," he said.   Continued...

 
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