The International Energy Agency (IEA) is concerned about a dramatic upswing in energy prices, according to its latest monthly report, with oil, gas and coal prices currently trading at multi-year highs.
“Our position is that expensive energy is back … And it poses a threat to economic growth,” the Paris-based organization said Friday.
Oil prices have surged more than 25 percent this year, prompting some investors to speculate about the possibility of a return to triple-digits before year-end.
Meanwhile, President Donald Trump has repeatedly blamed OPEC for rising gasoline costs, as prices continue to head in the wrong direction for American consumers with midterms just around the corner.
As a result of soaring energy prices, the IEA downwardly revised its demand outlook over the next two years. The group now expects demand growth to slow by 110,000 barrels per day to 1.3 million barrels per day (mb/d) in 2018 and 1.4 mb/d in 2019.