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UK Chancellor says oil prices big danger to economic recovery
Published on January 20, 2010 by oilprices · No CommentsHigher crude oil prices could derail the UK recovery, the UK Chancellor of the Exchequer Alistair Darling warned yesterday. The UK Chancellor said higher fuel costs threaten to push up prices in the shops and hit jobs.
Mr Darling said: “There’s a lot of global uncertainty around. And we do need to be vigilant. As the global economy begins to recover, for example, it will have a bearing on people’s costs. Oil prices are pushing $80 last week, $77 this morning. There’s a hell of a lot of reasons to be vigilant. As the global economy begins to recover, for example, it will have a bearing on people’s costs.”
He spoke after oil peaked at $80 a barrel last week, with inflation up to 2.9%. The Chancellor also warned of a big programme of cuts aimed at halving the UK’s public borrowing over four years.
Mr Darling added: “If you are going to take spending down to that level, it will be tough. And it’ll be difficult.”
Oil prices fell to near $78 a barrel Wednesday in Asia amid expectations of a dismal US crude inventory report and fears of more lending curbs in China.
Tags: Chancellor, global, oil prices, recovery, UK