The continued struggle by Europe and the US to shrug off the malaise from the financial crisis of 2008 is likely to restrict growth - even in the buoyant Asian economies that supported high oil prices last year.
"Europe has now entered another recession, only a little more than two years after the last recession ended," says Joachim Fels, an analyst at Morgan Stanley, in a research note. "Our US base case remains anaemic growth of just over 2 per cent next year. Unsurprisingly against this backdrop, growth prospects for emerging-market economies have dimmed further."
Diminished global growth and the possibility of a double-dip recession in the euro zone are widely predicted to push the price of oil below US$100 a barrel at least in the first half of this year, with prices possibly rebounding later in the year alongside a recovering world economy and underlying supply risks.
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