Friday, 4 March 2011

Oil price surge may cut UK GDP -govt

A doubling in oil prices from an average of $80 per barrel last year to $160 in 2011 would trim around 45 billion pounds ($73.2 billion) off Britain's gross
domestic product over two years, according to UK government economists.

Britain's GDP was 1,456.27 billion pounds in 2010, so the Department of Energy and Climate Change (DECC) estimate for $160 oil cutting 22.5-billion pounds a year off would equate to over 1.5 percent of GDP for that figure.

Brent crude prices have already risen about $23 per barrel since the start of 2011 , hitting $119.79 per barrel on Feb. 24 as violence and production cuts in
Libya drove prices to levels not seen since 2008 before the global economic crisis.

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