Major disruptions to oil supply could be “particularly damaging” to the world’s economy and could add to the difficulties facing many households.
Research by the International Monetary Fund says the world is learning to cope with high oil prices, pointing to recent oil prices hitting $100 a barrel without triggering a recession.
However countries are still finding big surges very hard to absorb, says the IMF. The global lending body says the world finds it especially “difficult” to handle large, abrupt price changes if they come from supply disruptions.
The research also suggests future supply disruptions could be costly because of the fears they trigger about a “more permanent” loss of fuel.