SINGAPORE: The global economy and share marketshave no choice but to live with current oil price levels as fears regarding a Japanese nuclear meltdown is beginning to ease, says an analyst.
Dr Shane Oliver, head of investment strategy and chief economist at AMP Capital Investors, said the focus has returned to tensions in the Middle East and European debt problems.
“Upwards pressure on the oil price has resumed following the United Nation -authorised international intervention in Libya led by the US and Europe and ongoing problems in Bahrain, Yemen and elsewhere in the region,” he told Bernama in his weekly review of the global economy.
Oliver said if the Middle East turmoil remained contained without further supply disruption then oil prices would stabilise at around current levels and the issue would simply become background noise for markets rather than being a major negative.
He added that shares were still cheap and were in the process of resuming their cyclical recovery. — Bernama