IMF warns oil growing scarce, more costly

The International Monetary Fund warned Thursday that nations should brace for dwindling oil supplies that could drive prices skyward as demand increases, especially in emerging-market economies .
"The persistent increase in oil prices over the past decade suggests that global oil markets have entered a period of increased scarcity," the IMF said in a report on the global economy.
"The increased scarcity arises from continued tension between rapid growth in oil demand in emerging-market economies and the downshift in oil supply trend growth," the Washington-based institution said in its twice-yearly World Economic Outlook (WEO).
"If the tension intensifies, whether from stronger demand, traditional supply disruptions, or setbacks to capacity growth, market clearing could force price spikes, as in 2007-2008."