Oil Output Hike Needed If Inventories Fall: IEA Head

London, Oct. 30 (Jiji Press)–International Energy Agency Executive Director Nobuo Tanaka said Tuesday a crude oil production hike would be necessary if inventories decrease toward winter.

If crude oil prices keep rising, it would deal a blow to oil- consuming countries, he said in an interview with Jiji Press.

Tanaka’s comments came after the benchmark December crude oil futures contract on New York Mercantile Exchange briefly hit a record high of 93.80 dollars per barrel on Monday despite the Organization of Petroleum Exporting Countries’ decision last month to increase its members’ oil output by 500,000 barrels per day from November.

Referring to the record-breaking oil price uptrend, Tanaka said the market appears to be sending a message that the oil supply- demand balance will become tighter toward winter.

He noted that the current market developments reflect various factors, including geopolitical risks in Turkey and Iraq, and speculative moves.

Tanaka said the IEA has asked China and India, both major oil- consuming countries, to participate in a series of IEA meetings to be held in December as part of the organization’s efforts to deepen relations with them. China and India are not members of the IEA.END

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