How far could Oil price RISES?
As usual, another episodes of tension in the Middle East pushes global oil prices higher, and surpassing $100 per barrel this time. We did seen this kind of scenario before in the Middle East during 1973-74, 1979, and the Iraq war in 1990. Are there any different this time? Libyan leader Muammar Qaddafi By Credit Suisse , We believe the rise in oil prices is manageable . Each 10% rise in oil prices only takes about 0.1% off global GDP and 0.2% off US growth. With Western wage growth muted, central banks are unlikely to raise rates on account of oil alone. Our analysts see oil prices below $100 pb this year, supported by the following reason which differs from previous oil crisis:- There is enough spare capacity in the global oil market to deal with supply-side disruptions as long as they are not too extreme The energy intensity of global GDP has fallen by around 40% over the past 40 years There is unlikely to be the same inflationary follow-through as in the 1970s Oil producer...