5 Jan 2011

Warning rising oil prices bad for economies

9:11 pm on 5 January 2011

The International Energy Agency has renewed its warning that the global economy is facing danger from rising oil prices.

The oil bill for the main developed countries rose by $US200 billion last year, it says.

IEA chief economist Fatih Birol told Britain's Financial Times that rising oil import bills will make economies sick sooner or later.

The price of oil is more than double its lowest point during the global downturn and costs about $US89 a barrel today, the BBC reports.

The IEA is putting pressure on oil producers, saying they should show understanding by increasing the flow of oil and so reducing prices.