Chu "nervous" about high oil prices

Energy Secretary Steven Chu engages reporters during the 2009 Reuters Washington Summit in Washington, October 20, 2009.

WASHINGTON (Reuters) - The rising cost of oil could damage the world economy just as it begins to rebound, U.S. Energy Secretary Steven Chu said on Tuesday.

Wide swings in oil prices are difficult for industries to manage and the U.S. government is concerned about another price spike, Chu said.

"Even $80 is making me nervous," he told the Reuters Washington Summit.

Oil prices hit record levels above $147 a barrel last year, before crashing as a global recession cut energy demand. Crude prices are one again climbing.

Chu said a sharp upswing in oil prices could hinder a global economic recovery. He pointed out that last year's oil price spike was a "disaster" for the world economy.

"We've repeatedly said what the world wants and needs is stable prices," Chu said. "They have been inching up recently and it's a little bit concerning."

Oil price volatility can also harm the alternative energy sector, Chu said. He said the fall in energy costs after the oil price shocks of the 70s and early 80s wiped out many clean energy companies.

To help stabilize crude prices, Chu said the administration is working to improve market transparency. In particular, he said the Energy Department is focused on teaching developing countries how to compile energy data.

"The more information one has, the less there are these uncertainties, which would prompt swings (in prices)," Chu said at the summit, held at the Reuters office in Washington.

Crude oil prices hit a one year high above $80 a barrel on Tuesday, before slipping to around $78 in morning trading on the New York Mercantile Exchange.

(Editing by Andrew Hay)

(For summit blog: blogs.reuters.com/summits/)