Middle East Economic Survey


No 37


High Oil Prices Create Mixed Set Of Problems For Consumer Economies

Recent record high oil prices, buoyed by the impact of Hurricane Katrina in the Gulf of Mexico and by thin US oil stocks, as well as geopolitics and resilient global demand growth, have created a mixed bag of problems for global economies. In OECD countries, forecasts that rising oil prices would sharply raise inflationary pressures have yet to materialize, while in...