Oily scenario continues to challenge policymakers

HERE we go again. The familiar scene of rising oil prices from the not-too-distant past is back and with it comes the poser which will constantly dog policymakers and analysts.

What do they do when oil prices rise too high? Already the number bandied around is an alarming US$220 to US$250 (RM665 to RM758) per barrel.

Brent crude oil price - a benchmark for petroleum prices - is trading about US$116 (RM356) a barrel now.

Rising oil prices will stoke inflation fears, especially for food, and more importantly, on how they will hurt economic growth.

Unrest in Egypt, Bahrain and Libya, as well as most of the Middle East, will have a crushing effect on the already fragile recovery in the global economy.

Read more: Oily scenario continues to challenge policymakers http://www.btimes.com.my/Current_News/BTIMES/articles/rup5002/Article/#ixzz1G3xWtz5v

Oily scenario continues to challenge policymakers