Oil prices near $100 a barrel are still a threat to a slowing global economy that is likely to consume less fuel than the International Energy Agency (IEA) had forecast, the IEA's executive director said Tuesday. Brent crude this week dropped to a 16-month low below $96 a barrel before recovering to around $99, well off a peak of more than $128 in March but not low enough to stimulate, rather than hinder growth, Maria van der Hoeven said. "Let's be honest, we still confront a situation of near triple digit oil prices," Van der Hoeven told reporters at a news conference in the Malaysian capital. "This is placing a huge burden on budgets and that's contributing to the risk of further economic slowdown." Increased supply from OPEC producers had helped ease the price, she said. The fall was important, she said, but producers and consumers could not yet claim victory in taming the oil price. "I do hope the price will come down," she told Reuters on the sidelines of an industry conference. "The market is well supplied, producers are supplying more than demand." OPEC output in May hit its highest levels since 2008, as Saudi Arabia kept production high despite the fall in prices. Oil hovered below $84 a barrel Tuesday. By early afternoon in Europe, benchmark oil for July delivery was down 24 cents to $83.74 per barrel in electronic trading on the New York Mercantile Exchange. The contract rose 75 cents to settle at $83.98 in New York Monday. In London, Brent crude for July delivery was down 77 cents at $98.08 per barrel on the ICE Futures exchange. Saudi Arabia has said it is targeting an oil price around $100 a barrel, but is unlikely to throttle back on output just yet.
