IMF Expects Oil Prices to Remain High for Two Years

nternational Monetary Fund Managing Director Rodrigo de Rato said that although oil prices may not remain at near-record levels, they would likely remain high for another two years due to rising demand and supply constraints, news services reported.

Speaking in India, de Rato said supply bottlenecks and a lack of refining capacity were forcing prices higher, Reuters reported. Crude oil futures in New York reached a record $57.60 on Thursday, and closed at $56.72 on Friday.

World oil prices have climbed nearly 50% in the past year, Reuters reported. However, the global economy enjoyed its strongest growth in 30 years in 2004 despite a spike in oil prices, de Rato said.