Oil prices slipped slightly in Asian trading on Tuesday but remain well above $120 a barrel for Brent crude, as investors fret about Libya, unrest in North Africa, andNigerian election delays, not to mention delivery problems in the North Sea and a strike in Gabon.
At 0810 London time, Brent crude was at $120.67, down $0.39, but still close to its highest level since 2008. The premium over West Texas Intermediate - the US benchmark – widened to $12.80 – short of its March record of $17 but still high by past standards, in recognition of the greater threats to supply in Europe than North America.
For emerging economies, high prices are clearly bad for the oil importers. But they are also bad for the oil exporters if they stay high for any length of time, given the threat they represent to economic growth and to efforts (in some countries, including India and China) to control inflation.
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