Oil at $70 still historically high: IEA

By Muriel Boselli

PARIS (Reuters) - Crude oil prices remain high, despite a steady decline since the summer, and the oil market is still tight, the International Energy Agency's executive director told Reuters on Thursday.

"$70 a barrel is still historically high," Nobuo Tanaka said in an interview. "Price volatility shows the market is still tight," he said.

World crude prices have dropped more than 50 percent from a July peak above $147 a barrel, as fears of a global recession prompt waves of selling across stock markets and commodities.

Oil fell for a third straight session on Thursday to touch a new 13-month low around $71 a barrel.

The Organization of Petroleum Exporting Countries said earlier it had brought forward an emergency meeting to discuss the impact of the global recession to October 24 from November 18.

But Tanaka said that it was preferable for the OPEC to maintain its current production levels.

"There is still robust demand from Russia, China and the Middle East," Tanaka said, adding there was evidence that demand in those countries was still growing.

However, demand in rich nations was falling and continued economic woes would likely push the IEA to cut its oil demand forecast in OECD countries in its next monthly oil report.

He also said it was vital for non-OECD countries to invest more in energy projects as the OPEC share in oil supplies was growing.



Source: http://www.reuters.com/article/GCA-Oil/idUSTRE49F6UE20081016