"Oil prices continue to see-saw with developments in the Middle East and Japan. Potential for short-term disruptions as well as low-probability but high-impact events is driving the market," they said. Meanwhile the recent spike in oil prices could shave half a percentage point off growth of the world's advanced economies by 2012, according to a study by the Organisation for Economic Cooperation and Development published Tuesday.
"The recent oil price hikes may have a modest impact on activity in the near term," said the study entitled The Effects of Oil Price Hikes on Economic Activity and Inflation.
"If the $25 increase in the price of oil that has taken place since the Tunisian uprising (earlier this year) were to be sustained, activity could be reduced by about 0.5 percentage points in the OECD area by 2012 and inflation cold rise by 0.75 percentage points," it added.