London, March 2011

Prolonged unrest and oil supply disruptions could put economic resurgence on hold: Just as the OECD economies are struggling out of recession, a significant increase in oil prices is about the last thing that developed nations need right now. Thankfully, this has not come at the worst point of the oil market cycle, and neither has it come at the most benign.

A repeat of the 1970s oil crises, which saw prices spike, global economic growth dampen and stagflation, remains an extreme scenario. But it is not as obscure a prospect as it was just a few weeks ago.

By Guy Isherwood

http://www.commodities-now.com/cn-march-2011.html