Friday, April 08, 2005

High oil prices may perpetuate Eurozone gloom

Oil prices look to stay high according to the IMF. With scare stories like this emanating from the IMF they most certainly will! The knock on effect for the Eurozone will be even more doom and gloom - maybe the Kommissars will revise their growth forecast down again.

The FT reported today -

Predicting surging demand from emerging countries and limited new supplies from outside the Organisation of the Petroleum Exporting Countries after 2010, Raghuram Rajan, IMF chief economist, said: “We should expect to live with high oil prices.” “Oil prices will continue to present a serious risk to the global economy,” he added.
Read more @ IMF warns of permanent oil shock