January 04, 2008	Friday	Zilhaj 24, 1428

BRUSSELS, Jan 3: The European Commission warned on Thursday that high oil prices, currently trading close to a record 100 dollars a barrel, would affect economic growth in the 27-nation bloc.

“Oil prices have been rising fast since the summer,” said Amelia Torres, a spokeswoman for the EU executive commission.

“If these very high levels are maintained, it will of course have an impact on the economy.” Prices for light sweet crude jumped to a record 100 dollars a barrel in New York on Wednesday. Prices eased on Thursday but were still close to the symbolic 100-dollar level.

The commission in forecasting growth rates, notably for the countries sharing the euro, has foreseen oil at an average of 70.60 dollars a barrel in 2007 followed by 78.80 dollars in 2008 and 76 dollars in 2009.

In November, it predicted momentum of 2.2 per cent this year in the eurozone, which now comprises 15 members, and 2.1 per cent in 2009 after 2.6 per cent in 2007.

But EU Economic and Monetary Affairs Commissioner Joaquin Almunia early last month warned that growth projections could be lowered because of high oil rates as well as the strong appreciation in the euro against the dollar.—AFP