Sunday, June 24, 2007

Oil Has `Substantial' Risk of Surging as Non-OPEC Output Peaks, Bank Says

(Bloomberg) -- Oil prices have a ``substantial''
risk of surging higher and boosting inflation because non-OPEC
production may soon peak, the Bank for International Settlements
said in its annual report.

``The short-run risks of sharp increases in oil prices
remain substantial,'' the Basel, Switzerland-based BIS said in
its 77th annual report today. ``The impact of oil price increases
could be significant; a recent analysis estimates that a supply-
induced doubling of prices would boost inflation in emerging Asia
by as much as 1.4 percent points above baseline.''


Read more at Bloomberg Energy News

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