Gulf News reported that surging oil prices that have been fluctuating in the danger zone between USD 115 and USD 120 per barrel over the past few days combined with rising food and commodities prices, could push inflation and affect the global economic recovery.
Brent crude for April settlement increased 17 cents to USD 115.59 per barrel on the London based ICE Futures Europe exchange. Record breaking gold leapt as high as USD 1,438.30 per ounce on the London Bullion Market.
According to the International Energy Agency, spreading unrest in Libya may have shut in as much as 850,000 to 1 million barrels a day of the country's output. Oil price could surge closer to the record high level of USD 147 if major oil producers stick to their production quotas and fail to reduce the gap left by the crisis in Libya.
Mr Dominique Strauss Kahn head of the International Monetary Fund said that the economic recovery may be affected if oil prices remain high. If the oil price remains high for a long time it may affect the recovery but if it's something that lasts for a couple of weeks the world will be able to handle the situation.
Mr Badr Jafar ED of the Crescent Group of Companies said that "If Iraq is able to achieve even half of the production increases officially targeted it could potentially reach 5 million barrels per day to 6 million barrels per day of production within the next ten years, benefiting both Iraq and the global economy.”
Mr Srinath Manda program manager of transportation and logistics practice, Middle East, North Africa and South Asia, Frost & Sullivan said that "The ongoing protests against governments in the Middle Eastern region are likely to have multi-fold negative impact on the transportation and logistics sector in the region and across the world. While the disruptions in output in key oil producing nations such as Libya and Oman would first affect the crude oil freight service providers immediately, the subsequent price rise and shortage of fuel supplies in the consuming markets would lead to steep inflation and destabilization of economies and thereby seriously affect the transportation and logistics service providers too."
Source: http://www.steelguru.com
Brent crude for April settlement increased 17 cents to USD 115.59 per barrel on the London based ICE Futures Europe exchange. Record breaking gold leapt as high as USD 1,438.30 per ounce on the London Bullion Market.
According to the International Energy Agency, spreading unrest in Libya may have shut in as much as 850,000 to 1 million barrels a day of the country's output. Oil price could surge closer to the record high level of USD 147 if major oil producers stick to their production quotas and fail to reduce the gap left by the crisis in Libya.
Mr Dominique Strauss Kahn head of the International Monetary Fund said that the economic recovery may be affected if oil prices remain high. If the oil price remains high for a long time it may affect the recovery but if it's something that lasts for a couple of weeks the world will be able to handle the situation.
Mr Badr Jafar ED of the Crescent Group of Companies said that "If Iraq is able to achieve even half of the production increases officially targeted it could potentially reach 5 million barrels per day to 6 million barrels per day of production within the next ten years, benefiting both Iraq and the global economy.”
Mr Srinath Manda program manager of transportation and logistics practice, Middle East, North Africa and South Asia, Frost & Sullivan said that "The ongoing protests against governments in the Middle Eastern region are likely to have multi-fold negative impact on the transportation and logistics sector in the region and across the world. While the disruptions in output in key oil producing nations such as Libya and Oman would first affect the crude oil freight service providers immediately, the subsequent price rise and shortage of fuel supplies in the consuming markets would lead to steep inflation and destabilization of economies and thereby seriously affect the transportation and logistics service providers too."
Source: http://www.steelguru.com
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