Prices for Brent crude have peaked at just above $127 (£78) a barrel so far this year although it fell to around $111 yesterday as uncertainties about how Greece’s debt crisis could be resolved spurred risk aversion.
“Oil prices are still significantly higher than average of 2008. High oil prices are a significant risk to derailing the economic recovery not only in the OECD countries, but also in China and India,” the IEA’s chief economist Fatih Birol said.
“China and India are two most important economies which helped us get out of the economic crisis. If they go for tightening of monetary policies, this may lead to a slowdown in their economies which is bad news for all of us.”