Gloomy Outlook For Global Economy

By Shigeru Sato  |   2008-6-26  |     NEWSPAPER EDITION

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-- Adverstisement --

THE global economy would collapse if oil hit US$200 a barrel, said the top energy analyst at Germany's largest bank. "Two-hundred-dollar oil would break the back of the global economy," Deutsche Bank AG's Chief Energy Economist Adam Sieminski told Bloomberg News.

"Next step after US$200 would be global recession and bad news for everybody."

His comments come after Goldman Sachs forecast oil may rise to between US$150 and US$200 within two years as supply fails to keep pace with demand.

Russia, a non-OPEC producer and the world's second-biggest oil exporter, faces its first annual decline in production in a decade. Prime Minister Vladimir Putin pledged tax cuts to stimulate investment in aging fields.


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