Banks warn investors of rising oil prices

Traders working in the crude oil and natural gas options pit on the floor of the New York Mercantile Exchange. Organisation of Petroleum Exporting Countries (OPEC) has predicted that oil wouldn’t touch US100 in the next 10 years - REUTERS

THE ascending oil price has prompted three big banks - Barclays, Morgan Stanley and Deutsche Bank - to flag the danger of a financial bubble.

According to The Telegraph, they have all issued reports advising investors to tread carefully as energy and base metals fall prey to unstable speculative flows in the derivatives markets. It said oil had jumped 40% since January even as the United States, China and the world economy as a whole had been sputtering, falling far short of expectations.