MercoPress. South Atlantic News Agency

IMF warns about soaring oil price.

The soaring price of crude oil has become a risk for the world economy and will have a visible impact over growth next year, said International Monetary Fund Managing Director Rodrigo de Rato.

"The risks of an overall slowdown have increased with the evolution of oil prices", indicated Mr. de Rato during a meeting in Geneva of officials from IMF, World Bank and the World Trade Organization.

"We can visualize a clear impact for the coming year, but we are also anticipating positive growth forces which should help to compensate partially", said Mr. de Rato with out giving further details.

However Mr. de Rato added that it was too early to review IMF growth estimates based on the impact of oil prices, which could lead to a deceleration of the world economy followed by increasing inflationary pressures.

The light Mexico Gulf barrel of oil closed last Friday in New York above 55 US dollars. Since breaking the benchmark of 50 US dollars three weeks ago, the price of crude has consistently climbed to its current level and some analysts are talking of 60 US dollars.

IMF officials have indicated that the organization's global growth estimate of 4,3% in 2005 published last September 29, "no longer stands".

Mr. de Rato left Geneva Saturday to begin his first official visit to the Middle East, one the world's main oil exporting regions.

In related news the president of Organization of Petroleum Exporting Countries, OPEC, Purnomo Yusgiantoro said he was determined to make Indonesia increase its oil production in one million barrels per day by the end of the year.

According to the "Yakarta Post", Mr. Yusgiantoro who retained his job as Indonesia's Energy and Mineral Resources following the taking office of elected president Susilo Bambang Yudhoyono said that to achieve the target it will be necessary to accelerate the building of maritime terminals in the Belanak area where US ConocoPhillips operates.

He also indicated that Indonesia would speed the exploration licence awarding process in fifteen contracts involving 160 million US dollars.