The two-week surge in the oil price has raised the specter that a jump in energy costs would fuel inflation and lead policymakers to ease stimulus spending and raise interest rates, undermining a nascent global economic recovery.
"It's definitely a potential threat," said David Cohen, director of Asian economic forecasting for consultancy Action Economics. "Everybody gets a little nervous when the oil price starts bouncing higher."
Energy Secretary Steven Chu said earlier this week that crude prices at $80 per barrel are worrisome.
Stock markets, which have soared since March, could see gains reversed if oil and other commodities continue to rally, Cohen said. (sources)
