06 January 2011

High oil prices threaten economic recovery

Via the Globe and Mail:

"Oil prices are entering a dangerous zone for the global economy," the IEA's chief economist, Faith Birol, told The Financial Times. "The oil import bills are becoming a threat to the economic recovery. This is a wake-up call to the oil consuming countries and to the oil producers.

This warning, the newspaper said, will ramp up pressure on OPEC countries to boost their production.

The strength in oil, chief economist David Rosenberg of Gluskin Sheff + Associates said today, does not reflect stronger consumer demand in the United States, but rather external forces and heightened investor demand.


Who knew?

- srbp -