PARIS, May 2: The world’s richest oil consuming nations gathered in Paris on Monday for talks aimed at securing supply and limiting economic damage caused by near-record prices amid new signs of torpor in the oil-guzzling Western economy. The United States, Europe and Japan were among those due to meet under the auspices of the 26-nation International Energy Agency, the energy arm of the OECD, which meets every two years at ministerial level to protect the interests of oil consumers.

Usually seen as a curtain-raiser to the more high-profile meetings at its parent Organization for Economic Cooperation and Development, the IEA’s talks this year are dominated by the kind of dramatic oil price activity which led to its birth in 1974. Crude oil prices have catapulted to record highs above $58 a barrel this year as surging demand in Asia’s emerging economies pushes world supplies close to capacity. Goldman Sachs bank has warned of a potential “super-spike” to $100 a barrel.

With consuming nations able to use energy more efficiently than 30 years ago, few are yet predicting the kind of economic chaos that followed the Arab oil boycott in 1973. But the IEA is thinking up ways to save energy in the event of a crisis. Oil prices fell one percent to 10-week lows below $50 on Monday as higher Opec supply and swelling stocks in the United States dripped into the market. But prices are up by more than two thirds since the IEA last met in Paris two years ago.

“It’s a split market for the time being. Short-term it’s definitely weak if you look at stocks and Opec production,” commented Tony Nunan at Mitsubishi Corp in Tokyo.

“But medium term, three to six months out, it looks like supply could be really tight.”

Economists are increasingly blaming high energy costs for what seems to be an unexpected slowdown in the European economy.

Those concerns mounted on Monday when it was reported that the manufacturing sector in the euro zone shrank for the first time in a year-and-a-half in April.

European figures on economic growth are due out soon but the bad news is already seeping out in other places.—Reuters