Brent is flat today at $113.50 and is only $3.80 above the 2014 average but economists are already beginning to worry about a global drag from higher prices, Bloomberg writes.
The rule of thumb favored by many economists is that every $10 increase in the price of a barrel of oil ends up cutting global growth by about 0.2 percentage point.
I’m skeptical that oil prices will rise in the near term. The refinery attack in Iraq hasn’t boosted prices today so I’m struggling to see a catalyst.
