The International Energy Agency (IEA) said a boost in Saudi oil output would provide welcome relief from the threat that high fuel prices pose to efforts to revive the global economy. The Paris-based IEA, which advises industrialized countries on energy issues, has warned that Brent prices over $100 a barrel are a threat to the global economy. Saudi Arabia's output increase in November was timely, given low global oil inventories and poor output from non-OPEC producers, IEA chief economist Fatih Birol told a seminar in Australia Monday. “OECD stock levels are at historically low levels, plus we are in a very fragile economic recovery situation,” Birol said. “And higher prices than we have now can strangle economic recovery efforts worldwide, therefore the Saudi production boost currently and in the future will be very much welcomed.” A senior Saudi oil official told Reuters last week the Kingdom produced 10.047 million barrels per day (bpd) of crude oil excluding condensate in November, the highest rate for decades. Demand for crude would remain strong driven by energy hungry China, he added. A sherpa meeting of OPEC experts in Vienna Monday discussed a report from OPEC headquarters that forecasts demand for OPEC crude at 30 million bpd, near current output, in the first half of 2012. The Opec summit is Wednesday.
