Rising crude oil price may pull down global economy
The recovery of the global economy may be jeopardize due to the surging oil prices as it is vulnerable. The oil price at this time is vulnerable due to the variety of risks through the political and social turmoil. The global recovery may lead to the sustained oil price as the world at present is under natural disasters. The details was been given by the RBI governor Duvuri Subbarao during the spring meeting of IMF which was on Saturday.
Even if some of the inflationary pressures have been taken up by emerging and developing countries. There will be danger in the slowdown in the whole global economy as the oil prices are moderate in the current levels. During the address of International Monetary and Financial Committee Subbarao spoke these words.From the summer of the year 2010 there has been several natural calamities and post crisis resurgence of demand.
Considerably there has been the surge in the world food price due to the bad weather and low inventories. These reasons have been the raising concerns over the food security as there are certain commodative derivative market.The price in the oil food commodity is even been under volatility prone to a variety of risks from different parts of the world. The financial conditions at present has even turned to be uncertain and have been volatile looping into the global economy.