International Energy Agency asks oil producers to increase investment, raise production

Mumbai: The International Energy Agency (IEA) has called for larger investment by oil producing countries to ease a possible tightening of the oil markets, after an expected lull in 2009-10.

''The situation could be better in 2009-2010 but after that the situation will be getting tighter again," IEA executive director Nobuo Tanaka, who is on a visit to OPEC member Algeria, said.

Oil prices remained very high and overall world consumption would grow despite declining demand in major industrialised countries, head of the Paris-based adviser to 27 industrialised countries said.

The situation would improve by 2009 thanks to new investment in production. But, thereafter, they would tighten again, he said, adding, ''We want producing countries to increase investment."

Tanaka said the world demand for oil would grow at 860,000 barrels per day (bpd) in 2009, reaching a total of 87.7 million bpd, down from a growth of 890,000 bpd this year.

Rising demand from emerging economies such as China, India and the Middle East have been cited as the main factor behind the almost sevenfold surge in the price of crude oil - from $20 six years ago to a record high of over $140 a barrel, currently.