Fears for economic recovery as oil 'to hit $220'

The oil price could surge to $220 a barrel and thwart the global economic recovery, according to Nomura.

The price of Brent crude oil rose to nearly $120 a barrel yesterday, on the back of turmoil in Libya and fears of this spreading through the oil-rich region, the Telegraph reports. Japanese investment bank Nomura has warned oil could reach as high as $220, should Libya and Algeria stop oil production. Lack of supply could further fuel price rises, unsettling the global economic recovery and pushing UK inflation even higher. Surging prices in the commodity could see inflation in the UK rise above the 4% mark, potentially strangling growth. Analysts say CPI could rise as high as 4...