The International Energy Agency is sounding another warning ahead of the upcoming OPEC meeting about the impact of rising energy prices. Perhaps this concern is being enhanced with the announcement that President Ahmadinejad in Iran will attend, perhaps looking to block any increase in oil production. MarketWatch reports that "The governing board of the International Energy Agency Thursday expressed ‘serious concern’ about growing signs that the rise in oil prices since September were affecting the economic recovery. The IEA urged producers to help avoid the negative consequences from high energy prices and said it ‘welcomes commitments to increase supply.’ The board noted that high oil prices were widening global imbalances, reducing household and business income, and placing upward pressure on inflation and interest rates. The agency noted that crude-oil prices remain at elevated levels despite a 10% correction since May 5. The IEA added that enhancing ‘consumer-producer dialogue is urgently important’ to reach both short- and long-term solutions."
The other key issue for traders today is President Obama's speech on the uprisings in North Africa and the Middle East known as the Arab Spring. The administration realizes the historic opportunity this is, not only for the US government, but for the people that have lived under repressive regimes and the world at large. The President is going to offer financial support to the fledgling democracies in Tunisia and Egypt and layout a blueprint of support for change in the region.
Phil Flynn is senior energy analyst for PFGBest Research and a Fox Business Network contributor. He can be reached at (800) 935-6487 or at email@example.com.