BlackRock expects the price of oil to $ 120 and the impact of growth

warned one of the most successful fund managers to invest in natural resources in the world that oil prices could climb to $ 120 a barrel or more during the current year to reach the level of hampering economic growth.

Said Dan Rice, managing director of BlackRock fund of energy and resources, told Reuters he believed that the current rate of global economic growth can not continue in a world of increasingly restrictive for the supply of energy.

He told Reuters in a telephone interview, “I do not think that the world can continue to grow at this rate without the high (oil prices) to $ 120 and above.” The average annual return for the Fund of BlackRock, energy and resources, 18 percent in the past ten years.

“This will curb the economy and makes the global growth falling to three percent.”

He said Rice, who invests in the shares of natural resource companies, said he saw that global growth is currently at about five percent, but believed that the world is heading into a period of slowdown because of the global economy is affected by the high cost of energy and other raw materials.

It is expected that the demand for oil at a record 89.1 million barrels per day in 2011, according to the International Energy Agency. While many traders believed that OPEC has enough spare production capacity to prevent prices to 150 dollars, as happened in 2008, but that demand has risen by more than four million barrels per day since the arrival of the recession to the peak.

Rice said he feared that the lack of supplies to the global economy sliding into a downturn what happened three years ago, according to his belief.

He said the oil price at about $ 90 a barrel in the long term is perhaps the highest level that could withstand the global economy without causing a global slowdown.

Read more: http://dinarvets.com/forums/index.php?/topic/51024-blackrock-expects-the-price-of-oil-to-120-and-the-impact-of-growth/?s=dfdaeaaf72204ef86e71deddfa0b57ec#ixzz1BW6Ojiyh