Sun, Feb 27, 2011 - Page 11 News List

IMF downplays losses from oil prices

Reuters, WASHINGTON

Higher oil prices should have a limited impact on the world economy if prices stay at current levels, the IMF said on Friday.

“The increase by some US$10 per barrel since mid-January has reflected increased oil supply risks due to events in the Middle East and North Africa, but -current market pricing suggests that this will be mostly a temporary price shock,” an IMF spokesman said.

However, if prices continue to rise because of further supply disruptions, the impact to global growth “could become appreciable,” the spokesman said, adding: “But that is not our, or the -markets’ expectation.”

Still, the IMF said the effect on global growth of increased oil supply risks was hard to predict.

The IMF raised its baseline forecast for this year’s oil prices to US$94.75 a barrel from US$89.50, according to a document submitted to G20 ministers meeting in Paris last week.

This story has been viewed 1237 times.

Comments will be moderated. Remarks containing abusive and obscene language, personal attacks of any kind or promotion will be removed and the user banned.

TOP top