IEA to attend crucial oil price meeting in Jeddah

Abu Dhabi: The International Energy Agency (IEA) said yesterday it will attend the meeting of oil producers and consumers being held by Saudi Arabia in Jeddah on June 22 amid record oil prices.

"These high prices are not sustainable and jeopardise economic growth globally. The impact is especially acute in developing countries," an IEA statement quoted its executive director, Nobuo Tanaka, as saying.

The Paris-based IEA advises 27 industrialised nations on energy policy.

The Saudi initiative can contribute to enhanced dialogue between producers and consumers and convey clear messages that oil supply is going to keep pace with demand growth in the coming years, the IEA said.

"We would welcome an opportunity to act collectively to reassure the market about future demand and supply balances in order to change the perception of extended tightness," Tanaka added.

Oil prices have risen around 40 per cent since the start of this year. They touched an all-time high above $139 last week on the New York Mercantile Exchange.