Warns Of Oil Shocks Derailing Recovery In 2004

Dubai, Sept 18: | Updated: Sep 19 2003, 05:30am hrs
The International Monetary Fund (IMF) has said oil prices will remain volatile next year and warned against possible shocks that could threaten global economic recovery.

Oil prices are likely to remain volatile and future shocks could again affect economic prospects, said the Fund in its world economic outlook report, released here on Thursday.

The uncertainties surrounding the near- and longer-term outlook for world oil demand and supply suggest that oil prices could deviate significantly from the path implied by future markets.

The report says the market expects prices to be sustained near current levels of $26-27 per barrel, and to drop to $25 in late 2004 because of increased production in Iraq, West Africa, Brazil, the Gulf of Mexico and the Caspian.