IEA says prices still too high

Bangkok: Oil consumption in the US and OECD nations are weakening but China and India have yet to show signs of demand destruction, making it unclear if the price fall to below $120 a barrel from records indicates a real turning point, the IEA head said on Tuesday.

"We don't know if this is a turning point. We'd like to know but we don't have an answer yet," Nobuo Tanaka, executive director of the International Energy Agency (IEA) said, adding that the current $119-$120 levels are still too high, after prices plunged from records near $150 a barrel.

Tanaka said the IEA was satisfied with Opec's delivery on its commitment to increase supplies and was not asking for more, but wanted current production levels to be maintained.

Tanaka added that he supported the decision by some of countries in this region to cut fuel subsidies.