The International Energy Agency (IEA) has warned the Organization of Petroleum Exporting Countries (OPEC) of repercussions from a proposed cut in oil production on the world's developing economies.
Addressing a press conference at IEA headquarters in Paris, Nobuo Tanaka, the Executive Director of the agency, said a further reduction in oil production would suffocate the still-growing economies of countries such as China, India, and Brazil.
However, Tanaka said he doesn't see any "evidence at the moment of a slowdown" in these countries.
It is feared that a ministerial-level meeting of OPEC members later this week will vote to reduce supplies to reverse the trend that saw a sharp fall in oil prices lately.
Worries about weakness in the global economy, spurred by the recent financial crisis, have pushed oil prices to around $70 per barrel, well off the all-time high of more than $140 set earlier this year.
OPEC president Chakib Khelil indicated Sunday that a "substantial" cut would be announced at Friday's meeting in Vienna.
OPEC members such as Iran, Venezueala, Qatar, and Ecuador, which are heavily dependent on oil revenues, want production to be cut to minimize the prospect of prices falling any further.
Venezuelan President Hugo Chavez said he would like pricing between $80 and $90 a barrel.
Concerned by the possible production cut, oil prices have risen above $73 a barrel in New York trading on Monday.
"Providing enough oil for developing economies is very important in maintaining global economic prosperity," Tanaka told reporters after releasing the IEA's CO2 Capture and Storage report.
"We think that even the current level of prices is very high and the market is very tight. At the end of the year, if OPEC continues the current production, we will have a good level of stocks so the market will ease," the IAE chief added.
Tanaka is the second important personality to voice his concern over OPEC's reported move to cut oil production.
Friday, British Prime Minister Gordon Brown said it was "absolutely scandalous" that OPEC is planning a meeting to consider cutting oil production in a move to drive prices higher.
The OPEC meeting, originally scheduled for next month, was advanced to October 24 to discuss the global financial crisis and its impact on the oil market.
However, a section of OPEC members are said to not be in favor of a big reduction in output. They feel such a move could send the wrong signal to financial markets, which are yet to recover from the shocks of the credit crisis.
Last week, news of rising U.S. oil inventories, falling retail sales and slowing housing starts fueled concerns that the world's largest economy may face a major recession that will undermine demand for crude.
In its monthly report released last week, the international energy watchdog cut its forecast for oil demand this year by 240,000 barrels per day, and slashed its 2009 forecast by 440,000 barrels per day in the wake of the global financial crisis.
The IEA acts as energy policy advisor to its 28 member countries and OPEC members.
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