Fears Over Oil Price Stalk Japan

Oil prices yesterday hit $60 a barrel for the second straight day, casting a shadow over Japan’s economic recovery.

As oil traders predicted a further rise towards $70, Heizo Takenaka, Japan’s economics minister, said Japan’s economy “was showing positive signs but oil prices may become a risk factor”.

His concerns were echoed by Hiroyuki Hosoda, the chief cabinet secretary. He said he was worried rising oil costs would have a “negative impact on the world’s economic development” and hurt demand for Japanese exports.

Meanwhile, representatives of the Group of Eight industrialised countries moved oil higher up the agenda for next month’s summit.
Financial Times