FRANCE: Rise in oil prices might have dramatic consequences on economy, says International Energy Agency's executive director Claude Mandil, as French consumers get worried about the cost of petrol

Record ID: 344403

  • Title: FRANCE: Rise in oil prices might have dramatic consequences on economy, says International Energy Agency's executive director Claude Mandil, as French consumers get worried about the cost of petrol
  • Date: 20th April 2006
  • Summary: MOTORCYCLIST JEANNE RADOUTZKI LEAVING PETROL STATION, EIFFEL TOWER IN THE BACKGROUND (GOOD SHOT)
  • Embargoed: 5th May 2006 13:00
  • Keywords:
  • Location: France
  • Country: France
  • Topics: Domestic Politics
  • Reuters ID: LVA6CWEX8V8GKLJ7NV4HEAAPF9II
  • Story Text: The rise in oil prices might have disastrous consequences for world economic growth, the International Energy Agency's executive director Claude Mandil said on Wednesday (April 19).
    In an interview inside the agency's headquarters in Paris, Mandil said he was sure that even though some might argue that the world economy is still booming, growth could be even stronger with lower oil prices, while some poor countries will be dramatically affected by their rise.
    "The economic situation is disastrous for some of the poorest countries, which do not have any oil production," he said, adding that "there are risks for inflation."
    French consumers appeared worried about immediate repercussions on the cost of petrol as they filled up their tanks in Paris' gas stations.
    Most of them said they thought that the price per litre, above 1,35 euros, was already high, and that they were worried about being forced to pay even more for something they could not do without.
    U.S. oil futures settled at a record just below $72 a barrel on Wednesday (April 19), as their price was pushed up by fears of a possible military action against Iran and a 3-month major shortage of Nigerian supplies.
    France's finance minister Thierry Breton said the government would call for a rise in oil output at the next G8 meeting in Washington this weekend.
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