Oil Price Surge a Risk as Non-OPEC Production Peaks, BIS Says

Oil prices have a “substantial” risk of surging higher and boosting inflation because non-OPEC production may soon peak, the Bank for International Settlements said in its annual report.

“The short-run risks of sharp increases in oil prices remain substantial,” the Basel, Switzerland-based BIS said in its 77th annual report today. “The impact of oil price increases could be significant; a recent analysis estimates that a supply- induced doubling of prices would boost inflation in emerging Asia by as much as 1.4 percent points above baseline.”

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