LISBON, 18 October 2004 — Portuguese Finance Minister Antonio Bagao Felix warned yesterday that the world economy would suffer “disastrous” consequences if oil prices remain at their current record high levels. “If oil remains at its actual levels it will not be just an economic disaster for us, it will de a disaster for all Western economies,” he said during an interview with Catholic radio Radio Renascenca. Oil prices hovered close to record high points approaching $55 a barrel as traders fretted about low inventories of US heating fuel heading into winter in the northern hemisphere. Bagao Felix unveiled a draft budget for 2005 which was based on forecasts of average world oil prices of $38.7 a barrel.