IEA says crude oil at $70 or above would hurt recovery

A fragile global economic recovery will be hurt if oil prices stay at $70 per barrel or rise higher, International Energy Agency (IEA) Chief Economist Fatih Birol said.

He also said Europe was likely to face a glut of gas by 2015 and it may be hard to garner support for both the rival schemes for gas pipelines across Turkish territory, one of which is backed by the EU, the other by Russia.

Birol told Reuters he did not want a decision by OPEC, which is to meet on September 9, to boost oil prices to harmful levels. "The decision I think they will take will foster the economic recovery, rather than dampen the economic recovery hopes," Birol said in an interview late on Monday.

"We would not like to see prices going up to levels that would be a risk to the global economic recovery."

US light crude for September delivery was trading at $70.80 a barrel at 1000 GMT on Tuesday.

"If the prices go much higher than today I think that would be a problem for the economic recovery; $70 and above, especially for oil importing countries," Birol.