OIL prices have “overheated” following crude’s recent run to 18-month highs, the International Energy Agency has warned.
Last week oil prices hit 87 dollars a barrel – the highest level since October, 2008. But the IEA said crude costs had run ahead of a fragile economic recovery.
While some recovery in demand supported prices at about 70 to 80 dollars a barrel, the IEA raised questions over “the sustainability of prices markedly higher than those levels”.
Motorists have felt the pain of the recent oil surge which – along with duty hikes and a weak pound – have left pump prices to an all-time high.
The IEA warned that the increase could also choke off recovery among developed nations by hitting manufacturing.