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The age of cheap oil is over, says the IEA

Oil prices could reach $135/b by 2035 says the IEA, as conventional output declines, while China drives rising demand, reports Helen Robertson

Expect more oil price hikes as conventional output declines, while demand rises, especially in Asia, says the International Energy Agency (IEA). "The age of cheap oil is over," says Fatih Birol, the IEA's chief economist. "To find market equilibrium we may need higher prices." In an interview with Petroleum Economist, Birol said that today's oil prices of between $85 and $90 a barrel are "already a threat to the world's economic recovery" and are putting a lot of pressure on the trade balance between countries (PE 11/10 p12). Nobuo Tanaka, the IEA's executive director, said the world faces "a veil of uncertainty" over global energy security because of increased oil demand and falling produc

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