Warning over volatile oil prices

Sky-high volatile prices in oil, food and a swath of minerals are now a permanent feature of the economy, a Nobel prize-winning economist has warned as crude touched a new record peak.

Michael Spence of Stanford University warned that volatile commodity prices were perennial features of the modern economy, but were “worth suffering”. It came as crude prices hit a new record high, rising above $132 a barrel.

In a further sign that investors are betting on prices staying high well into the future, the cost of buying a barrel of oil for delivery in 2016 rose briefly above $142. In London, Brent crude was up $4.28 at a record $132.12 in late trading.

Telegraph