IEA warns of soaring oil price in future

Oil prices could soar dramatically after the world economy picks up due to delays in energy investment during the credit crisis, the head of the International Energy Agency warned today.     

The Paris-based agency had yesterday slashed its forecast for oil prices in 2009 to $80 from $ 110 a barrel as developed economies brace for recession.     

But it also warned that the price could jump to more than $200 a barrel by 2030 as demand soars in China, India and other emerging economies.     

"What we are worried about is that oil development is being delayed," IEA executive director Nobuo Tanaka told a news conference in Tokyo.     

"As supply falls, prices are likely to surge when the global economy gets back on its feet," he said. "If we don't invest (in energy), this problem will only worsen.

Unless we develop new oil fields, we will be unable to maintain supply and demand," he said. "The era of cheap oil has ended."     

Oil prices surged to a record high of $147 per barrel in July but have since dropped more than half as the global economy swings downwards. Oil fell to a 22-month low of $55 a barrel yesterday.