Oil price of WTI at $96 and BRENT Ice at $114 currently categorically is too high to help sustain economic Recovery, and will start to drag on all the economies. It has already caused slow-down in the aviation sector, although more people are inclined to travel and see the world. The high oil price has meant airlines not being able to pay their fuel bills, and not being able to pay their staff salaries for last eight or nine months. This is true in the United States, India, and other places, and has necessitated airlines mergers in Europe.
When the Oil price peaked at $147 a barrel, it took out nearly $250 billion from the Eurozone. That has probably contributed to a prolonged recession, which has not really left hold of the economies, where once again the toes seem to be in what could turn into a double-dip, God forbid, if corrective measures are not implemented.
Talks of war in the Middle East should not be allowed to hold. While it may aid some nations financially to have a higher Oil price, in the long term it will not prove to be of profit if the sentiment actually turns negative. Recessions are very tricky pot-holes to come out of, and it has taken over three and a half years and still the effects are being felt worldwide. Demand-destruction would be the next logical scenario. A sustained period of six months of WTI at $85 a barrel and BRENT Ice at $100 a barrel would help everybody. While the world is in a sentiment of peace and Recovery, if everybody helps to sustain that sentiment and do the necessary, hopefully we will all have helped to avoid a double-dip, on whose brim the world currently stands.
I sincerely hope the people who can do the necessary influencing will do so.