World Economy Resists Oil Price

The world economy is bounding ahead, largely unaffected by record high crude oil prices, which have quadrupled over the past six years, economists say.

Oil prices have surged close to record peaks in recent days owing to tight global supplies and fierce demand led by the United States and China — the first and second biggest consumers of energy in the world.

A barrel of crude oil on world markets cost just 20 dollars at the start of 2001 — and has since risen to close to 80 dollars.

The world economy will grow by a robust 4.9 percent this year and next, slightly down from 5.4 percent in 2006, according to forecasts from the International Monetary Fund.

Alalam