‘Expensive energy is back’ ‘ and it’s threatening the global economy, IEA warns

The International Energy Agency (IEA) is concerned about a dramatic upswing in energy prices, according to its latest monthly report, with oil, gas and coal prices currently trading at multi-year highs.

“Our position is that expensive energy is back ‘ And it poses a threat to economic growth,” the Paris-based organization said Friday.

Oil prices have surged more than 25 percent this year, prompting some investors to speculate about the possibility of a return to triple-digits before year-end.

  • Publisher: CNBC
  • Date: 2018-10-12T04:00:09-0400
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Not to change the topic here:

‘Expensive energy is back’ ‘ and it’s threatening the global economy, IEA warns

Meanwhile, President Donald Trump has repeatedly blamed OPEC for rising gasoline costs, as prices continue to head in the wrong direction for American consumers with midterms just around the corner.

As a result of soaring energy prices, the IEA downwardly revised its demand outlook over the next two years. The group now expects demand growth to slow by 110,000 barrels per day to 1.3 million barrels per day (mb/d) in 2018 and 1.4 mb/d in 2019.

International benchmark Brent crude traded at around $81.29 Friday morning, up around 1.2 percent, while U.S. West Texas Intermediate (WTI) stood at $71.73, slightly over 1 percent higher.

IEA’s Birol warns global oil prices may enter the ‘red zone’ in Q4 2018

The head of International Energy Agency warned Tuesday that oil prices are set to enter the ‘red zone’ during the fourth quarter of 2018, threatening to hit demand growth as the strength of global economy falters.

The loss of Iranian oil supply due to US sanctions and deteriorating output from Venezuela will see oil markets further tightening, Fatih Birol told the Oil and Money conference in London.

With oil prices jumping more than $30/b this year to $85/b and other key energy prices rising sharply, Birol said prices suggest that ‘expensive energy is back at a time of fragile economic growth.’

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