26 May 2011 04:11 [Source: ICIS news]
FUKUOKA, Japan (ICIS)--The US economy will continue to grow in the coming years provided crude oil prices remain under $135/bbl (€96/bbl), a senior industry consultant said on Thursday.
A surge in West Texas Intermediary (WTI) to $135/bbl will cause growth to stop in the US and perhaps trigger a mild recession in Europe, Chemical Market Associated Inc (CMAI) President Gary Adams said at the opening of the Asia Petrochemical Industry Conference (APIC), which is being held in Fukuoka, Japan, on 26-27 May.
The front-month WTI contract closed at $101.32/bbl on Wednesday.
Adams said a severe run-up in crude oil prices, similar to the one in 2008 when WTI hit $147/bbl, could send the US into a short-term recession, but cause only a pullback in emerging countries such as China.
CMAI expects the Chinese economy to grow by 8% in 2011, surpassing 12% by 2015, while the global economy will grow on an annual average of 3-4% in the coming years.
($1 = €0.71)
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