Recent oil prices are “not helpful” for the global economy, Daniel Yergin, chairman of IHS Cambridge Energy Research Associates, said while attending the World Economic Forum in Tianjin, China.
“These prices are not helpful for stimulating economic growth,” said Yergin. “They’re not the main weight on the global economy but they add weight. The fundamentals would suggest lower prices but you have the Iranian wildcard and the politics of it is just going to build up for the rest of the year.”
Sanctions against Iran “have worked much more effectvely than expected,” he said.
Crude for October delivery decreased as much as 40 cents to $96.14 a barrel in electronic trading on the New York Mercantile Exchange and was at $96.21 at 9:35 a.m. Singapore time. The contract yesterday rose 12 cents to $96.54, the highest close since Aug. 22. Prices have climbed 24 percent since June 28.
— With assistance by Baizhen Chua