Is the world economy oil price-proof?

So what if oil prices have just set yet another record? They have been soaring for years without stunting global economic growth, profits or share prices, and without stoking high inflation, the curse of past oil crises. So far so good, but for how long?

As oil topped $72 a barrel on Tuesday, some economists began to ask again if the latest spurt in a four-year rally will push costs beyond tolerance levels, sparking inflation in earnest or a drop in business activity as companies buckle under bills. “The resilience of Western economies to recent oil shocks has been remarkable,” said Andrew Oswald, professor of economics at Britain’s Warwick University. “But presumably it cannot last”.

Daily Times