How Global Growth Could Skid on Oil

Even a quick end to an Iraq war might not be enough to pull prices back down to the $23-per-barrel range. That could be disastrous

The prospect of war with Iraq weighs heavily on the minds of many business leaders at the World Economic Forum meeting in Davos, Switzerland. The Europeans, in particular, are worried that an assault on Baghdad will sap already feeble consumer confidence, thus undermining demand, hurting corporate profits, and slowing the sluggish global economy. They also fear that conflict in the Gulf will drive oil prices higher and keep them there for at least the rest of the year.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.