Oil prices to stay high, predicts Montilla

29th September 2004, Comments 0 comments

29 September 2004, MADRID- Oil prices will remain high for "quite a long time", Spanish Industry Minister Jose Montilla said on Wednesday.

29 September 2004

MADRID- Oil prices will remain high for "quite a long time", Spanish Industry Minister Jose Montilla said on Wednesday.

Montilla said prices should only come down in 2005.

The oil price would tend to slow down next year "but not significantly", he said in an interview on Spanish private television channel Tele 5.

The price would remain high for "quite a long time" because demand by countries with emerging economies was increasing, because of speculation that was difficult to control and because oil production facilities were working almost at full capacity.

Montilla said that the surge of oil prices raised a threat of inflation for countries such as Spain which produces 1 percent of the oil it needs.

He stressed that energy consumption should be rationalised and that energy sources should be diversified, notably though renewable power.

The minister said that nuclear energy was not "the magic solution because the problem of dealing with waste has still not been solved".

The Socialist government headed by Jose Luis Zapatero has signalled that it favours abandoning nuclear generation in Spain by stages.

[Copyright EFE with Expatica]

Subject: Spanish news

 

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