5 Mar 2012

Oil prices looming as world's next big problem

12:03 pm on 5 March 2012

Oil is seen as the world's next potential economic crisis.

A new report by HSBC economist Stephen King suggests oil is the new problem that markets should be focussing on, now Greece is under control.

A number of factors, including tensions over Iran's nuclear plans and regional unrest in the Arab world, have pushed oil prices to their highest level since July 2008.

Brent crude has risen 16% this year and some analysts say it won't be long before it reaches $US150 per barrel. It is currently trading at $US127 p/b.

M3 Capital president John Netto says prices above $US138 - $US140 per barrel pose a danger to growth.