(by G. Finn)

David Robinson, deputy director of the IMF’s research department, said on Thursday oil prices may impact global economy for years.

Mr. Robinson in a presentation to reporters and bankers underlined the IMF growth forecasts are at about 4.3% in 2005. "So there are clearly downside risks to global growth because of oil prices looking forward," Robinson said, pointing at oil prices surged recently to $53 per barrel.

"This is perhaps the biggest concern right now and the biggest concern looking forward," Robison said. "I do worry about the medium-term outlook, about the sustained vulnerability to oil prices."

The spare production capacity is not the one to be increased too quickly as it is now around 1 million barrels lower as compared with the average level. "We could well be in a situation where we have sustained low excess capacity in the oil market for a number of years to come," he said.