Insight - Effect of oil prices on global economic recovery


Some answers to oil price spike: What does it mean for growth? What about inflation, hat does it mean to central banks, Who wins from high prices, Who loses? What's Opec's role?

THE spike in oil prices has focused attention on how the steady rise in energy costs is threatening to create a drag on the global economic recovery and stoking fears of inflation.

After surging more than 30% this year on coordinated supply constraints by major exporters and demand returning from the depths of Covid-19 crisis, a missile attack Sunday on a key Saudi Arabian export facility sent Brent crude, the international benchmark, above US$70 (RM288) a barrel for the first time since January 2020.

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