IMF chief calls for more investment in oil production
AFP, Geneva
International Monetary Fund (IMF) managing director Rodrigo Rato on Friday called on oil-producing nations to boost investment in production facilities in response to rising oil prices, which he said would have clear impact on growth. "Oil-producing countries have to respond to this new crisis, with an increase in investment, oil production," Rato said as he headed to top oil-producing nation South Arabia on the first leg of a three-nation trip to the Middle East. Although he placed the emphasis on action by consuming countries to cut down consumption in the largely demand-driven price spiral, Rato said there was also a need for greater transparency in oil markets to avert speculation. "We believe that a more transparent oil market will help certainly more efficient prices," Rato told journalists during a stopover at the World Trade Organisation's (WTO) headquarters in Geneva. The IMF chief reiterated that the risks of a severe brake on economic growth next year had increased, but said that it was too early to revise forecasts. "Downside risks from oil have increased. That is a clear reality right now," he said.
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