The importance of oil can be overstated

ON UK GROWTH

Jupiter's Ian McVeigh says although a rise in the oil price is one of the biggest risks to equity markets, it can often be overstated.

Political uncertainties in the Middle East and events in Japan have rocked equity markets in the recent months. Nevertheless, UK equities made positive returns in Q1. While the outcome of events in Libya and the Middle East are too uncertain to predict, it is no surprise problems in that part of the world have sparked an increase in the oil price. The role of oil in Western economies is important and the effect of a sharp rise in oil on global growth is one of the biggest risks equity markets face. However, the importance of oil can often be overstated. Oil represents around 5% of ...