Record high oil prices over a barrel are slowing world economic growth, John Lipsky, first deputy managing director of the International Monetary Fund (IMF), said on Monday. ''It's dampening growth -- that's for sure, but of course it is benefiting exporters,'' he said. ''It's going to slow growth as we've said before. It's one of the many factors this year.''
The Organisation of the Petroleum Exporting Countries (Opec) voiced concern on Tuesday over oil's relentless rise towards $88 a barrel, but some members said the exporter group can do nothing more to control the rally. Opec agreed last month to raise production by 500 000 barrels per day from November 1.
Opec was meeting on Tuesday to consider a modest rise in oil output proposed by Saudi Arabia and other Gulf Arab states in a gesture to consumers worried by the economic impact of oil and rapidly diminishing stocks. But the plan to add 500 000 barrels per day of oil had yet to convince all Opec ministers.
Oil prices fell below a barrel on Friday, even though Organisation of the Petroleum Exporting Countries (Opec) made a deeper output cut than expected, on concerns that some of the group's members may fail to comply with the curbs. ''There's still a degree of scepticism over whether they will deliver all the cuts,'' said a commodity strategist.