World Braces For Oil Shock: Crude Oil Climbs Over 11% In 20 Days

Global Commentator, Ajay Bagga said, “there will be massive demand destruction if price rises to $120-150. Economies will tip into recession and many downstream businesses will become unviable. Governments around the world already have a fiscal deficit problem. If energy subsidies shoot up or if recession strikes due to a pass through of prices, government revenues will shrink at the exactly wrong time when fiscal and monetary counter cyclical stimulus is needed.”