High fuel prices are impeding the global economy as oil-producing countries increase supply before the summer travel season, CNNMoney.com reported.

The International Energy Agency (IEA), a Paris-based energy watchdog, said Thursday that aglobal demand for energy typically increases from May to August, and that there is an “urgent” need for additional oil supplies to prevent further contractions in the market.

“Oil prices remain at elevated levels driven by market fundamentals, geopolitical uncertainty and future expectations,” the IEA said, adding that surging prices are putting upward pressure on inflation and interest rates.

After topping out near $115 a barrel last month, the cost of oil has tumbled 14 percent to about $99 a barrel on Thursday. IEA officials said that was still too high.