If this price is sustained in 2011, it could push total global expenditure on oil to 5% of GDP, the Paris-based agency said. It advises the Organisation of Petroleum Exporting Countries (OPEC) to increase exports by 300,000 barrels a day in order to meet rising global demand.
OPEC, which accounts for about 40% of the world’s total oil supply, says that any tightness in the market is incorrect. Instead more short-term factors such as speculation, combined with a weak dollar, are to blame.
But while the two oil organisations are at logger heads over what’s to blame for the rising prices, the real issue for many, of course, is how increases are being acutely felt by businesses and consumers back home.