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The International Energy Agency called on OPEC members to increase oil production in order to mitigate the negative economic consequences of less supply of black gold.

The International Energy Agency (IEA) urged the world’s crude oil producers to increase supply, to support economic recovery.

IEA call comes just weeks ahead of a meeting of the Organization of Petroleum Exporting Countries, 8 June.

Analysts, however, claim that it is less likely to be decided to increase production.

“The Board encourages producers to increase supply, thereby avoiding the negative economic consequences that would cause a further sharp drop in energy supply in the market, and welcomes any promise of production growth”, the IEA said in a statement.

Analysts point out that this is an unusual move by the Department of Energy Organization for Economic Cooperation and Development, since it is their policy not to comment on the politics of oil producers.

“It is rare to openly make suggestions IEA OPEC. This suggests that the International Energy Agency concerned that OPEC has increased supply. Production in Libya has practically stopped, while Saudi Arabia is very slowly increasing the volume of production”, says analyst of consulting firm “Denmark Markets” Kristin Tuksen.

However, OPEC for a long time does not change production quotas, despite rising prices for of oil, explaining that the supply of gas to the market enough.

The total global supply of liquid gold, OPEC accounts with 40 percent. Continue reading →

China’s economy could be strengthen an average eight percent annually in the next 20 years, which would allow it to exceed twice the volume of the American economy.

World Bank Chief Economist Justin Lin said that “China is likely to continue to use the advantage of lending technologies and industries of developed countries at low risk and cost.” He believes that China, the second largest economy in the world, could be twice as large as the U.S., based on the so-called indicators of PPP.

Viewed at market rates of exchange, China’s economy would reach the same extent as an American. China’s economy in the last 10 years strengthened an average of 10 percent a year during which time the economy has overtaken Japan, Germany, Britain and France.

“The Chinese economy has growth potential from an average of eight percent annually over the next 20 years”, said Lin.

He welcomed China’s decision to maintain a stable yuan exchange rate against the dollar during the global financial crises. According to him, allowing it to avoid the competitive reduction in the Chinese currency, which provided a “huge contribution” to economic recovery.

The risks to the economy of China including a jump in food prices, raw materials and fuels that pose a threat to social stability, such as “show and events in Tunisia and Egypt” , said Lin.
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