BRUSSELS (AFP) - EU monetary affairs commissioner Joaquin Almunia warned that the record surge in world oil prices was bad news for Europe's fragile recovery.
But the European Union's energy commissioner also expressed hope that oil markets would calm down after the US presidential elections in November.
"It's not a good news. If this level is maintained in the coming months, the European economy will suffer a little bit in terms of less growth and more inflation," Almunia said Tuesday.
He was speaking after crude prices surged above 50 dollars a barrel as traders took fright at a multitude of supply threats, including unrest in Nigeria and recent hurricane damage.
EU transport and energy commissioner Loyola de Palacio meanwhile said she hoped that crude prices would slump after the November US polls.
"Clearly there is a pressure because of the US election," she said, adding that there were no problems of supply to the market.
"There is a problem linked to speculation and to virtual operations, as well as political circumstances.
"All of that is possible because the oil market is opaque," she added.
Almunia did not say how big an impact the oil price spike could have on growth.
"I hope I will not be obliged to be more pessimistic or less optimistic than two weeks ago," he said, referring to a forecast of below 2.0 percent for GDP growth in 2005.
"In any case, we have to keep confidence that this evolution of the market is not permanent. And we continue to believe that a normal situation of oil market according to fundamentals is pointing to a lower level of prices."