Oil frenzy fuels threats to economic stability

While western countries have so far managed to avoid recession despite a trebling of oil prices, economists fear the surge is fuelling imbalances in the world economy and increasing the threat of a financial crisis.

“The likelihood of a bond market crash has increased considerably in recent months and there is a joint risk of a slide in the dollar,” Veronique Riches-Flores, chief economist at the French bank Societe Generale, said.