rediff.com

NewsApp (Free)

Read news as it happens
Download NewsApp

Available on  

Rediff News  All News 
Rediff.com  » Business » Rising crude prices to worsen global poverty: IMF

Rising crude prices to worsen global poverty: IMF

Last updated on: April 12, 2011 18:16 IST

Rising crude prices to worsen global poverty: IMF

     Next

Next

With global crude oil prices hitting the roof, the International Monetary Fund (IMF) has warned that rising prices of scarce natural resource could aggravate poverty.

The multilateral body has also asked the policymakers to take action to reduce risks arising from increased scarcity of oil resources to prevent any abrupt disruptions in supplies.

"Policies need to be complemented with efforts to strengthen social safety nets, because higher oil prices could lead to shifts in income distribution and to increased poverty," the IMF's World Economic Outlook (WEO) said.

Click on NEXT to read more...



     Next

Rising crude prices to worsen global poverty: IMF

Prev     Next
Prev

Next

The report said that analysis of demand and supply prospects for crude oil suggests that the increased scarcity arises from continued tension between rapid growth in oil demand in emerging market economies and the downshift in oil supply trend growth.

After a year and a half of global recovery, natural resources are again in the headlines.

The spot price of a barrel of Brent crude oil crossed the $100 threshold in January, 2011 and is currently ruling over $110 per barrel.

Click on NEXT to read more...



Prev     Next

Rising crude prices to worsen global poverty: IMF

Prev     Next
Prev

Next

Oil is the most traded commodity, with world exports averaging $1.8 trillion annually during 2007-09, which amounted to about 10 per cent of total world exports in that period.

Since the late 1990s, oil prices have generally risen and supply constraints are widely perceived to have contributed to this trend.

This has raised concerns that the oil market is entering a period of increased scarcity, the WEO said.

Click on NEXT to read more...



Prev     Next

Rising crude prices to worsen global poverty: IMF

Prev     Next
Prev

Next

As for the effects on the global economy, it said analysis suggests that the impact of increased oil scarcity on global growth could be relatively minor if it involves primarily a gradual downshift in oil supply growth rather than an absolute decline.

"...oil scarcity will not inevitably be a strong constraint on the global economy," it said but added: "However, the risks it poses should not be underestimated either."

It said much will ultimately depend on the extent and evolution of oil scarcity, which remain uncertain.

Click on NEXT to read more...



Prev     Next

Rising crude prices to worsen global poverty: IMF

Prev     More
Prev

More

"There is a potential for abrupt shifts, which would have much larger effects than more gradual shifts," it added.

The report said that at current high levels, commodity price developments and prospects can have important global economic repercussion.

The possibility that rising energy prices will spill over into core inflation is just one example, it said.



Prev     More
© Copyright 2014 PTI. All rights reserved. Republication or redistribution of PTI content, including by framing or similar means, is expressly prohibited without the prior written consent.