In light of the political turmoil in Egypt and the possible threat to Suez Canal shipping, rising oil prices and a tightening crude market are concerns of the International Energy Agency (IEA), its executive director, Nobuo Tanaka, told CNBC Thursday.
“If this $100 (per barrel) continues to hold for the year, the economic burden on the global economy, which is recovering, is very detrimental for the healthy recovery,” said Tanaka.
He added that high oil prices are a particular burden and threaten growth in developing nations and China, India and Africa.
Oil prices fell toward $90 a barrel Thursday, after the US dollar strengthened against the euro on positive US economic news.
“Demand is coming back,” he added. “In a tightening market, a small disruption may create a hike.”