Fears over MENA region oil output

OIL prices could hit economically damaging record highs if unrest in Africa and the Gulf cuts investment in output, the West’s energy watchdog warned oil producers, which said the real problem was likely defaults among eurozone members and banks.

The International Energy Agency (IEA), which advises the major oil-consuming countries on energy policies, said yesterday oil prices could spike by a third to above their all-time high of $147 a barrel.

The Organisation of the Petroleum Exporting Countries (OPEC) said the main risks were of price falls.