IEA: Prepare for Future Shock of Oil Costs

The International Energy Agency warned Thursday the world has yet to feel the full force of this year’s increase in oil prices.

Crude oil prices have risen nearly 50 percent since the beginning of the year.

IEA, the energy watchdog for industrialized economies, said the world economy is still largely responding to last year’s rise in price, suggesting consumers and industry should be prepared for further increases in energy costs.

High prices have so far had only limited effect in reducing demand and had not reversed economic growth, the Times of London said.

It added higher oil stocks are needed to calm the markets in the wake of record high prices spurred by security concerns, production outages and continued strong demand.