US money printing lifts oil prices, for now: IEA

PARIS, November 12, 2010 (AFP) – Easy-money policy by the United States is pumping up the oil price to about 90 dollars, but medium-term growth of oil demand should slow and contain the price, the IEA said on Friday. “Physical market developments through October have stoked expectations of inexorably higher prices even though the framework of market fundamentals for next year, to us, still looks fairly comfortable,” the International Energy Agency said. But “the dangers of a renewed price bubble, borne of perceptions on the timing of ‘inevitably’ tightening markets, seems clear,” it warned, in a reference to pressures in the immediate future.

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