IEA urges end to energy subsidies in oil importing countries

0 Comments | AFP, April, 2005

PARIS (AFP) — The head of the International Energy Agency urged oil importing countries to abolish energy subsidies as soon as possible, saying they tend to boost consumption.

"The oil market is not functioning well because there is not significant demand response to price signals," IEA executive director Claude Mandil told the Financial Times newspaper in an interview published Monday.

"Each subsidy distorts the market (and) gives the wrong signal as commodities seem less expensive than they are."

His comments came as the price of Brent North Sea crude oil reached a new record high of 57.05 dollars per barrel in London trading on Monday.

Brent's surge came after New York's main contract, light sweet crude for May delivery, struck a record high of...