Commerzbank Corporates & Markets Research Team, Germany:
"In the short term, oil prices should remain supported on the back of supply risks. As long as the fighting for major Libyan oil towns Ras Lanuf and Brega continues, a resumption of oil shipments is unthinkable. Hopes of a stronger growth of oil demand should be disappointed, though, given the high price level and we therefore expect the price to fall in the course of the year once the supply risks ease."
If the price of oil stays above $120 for more than 3 months we are looking at the US tipping back into recession with no fire power left to combat the shock.... and the impact on Europe will be worse.