Brent crude, the most expensive grade of oil which is widely available, continued to advance in price. As a matter of fact when measured in euros it reached an all-time high of 92.6 euros a barrel. That is higher than in 2008, when crude prices were also surging.
It is more and more likely that oil prices will derail the global recovery, and further damage an EU economy which has teetered on recession for months. The EC now expects the eurozone’s GDP to contract .3% this year. The effects in the US will likely not be as bad, but GDP growth could be cut from the currently expected 2% plus for 2012.
Brent crude rose for a fourth day, hitting a fresh nine-month high and a record in euro terms on Thursday, creating renewed concerns for cash-strapped Europe on heightened tensions between Iran and the West.