Aff - NU - Several SQ thumpers to oil market Oil markets face volatility—Iranian sanctions, Norwegian worker strikes, and low interest rates Reuters 7/9 (Mike Dolan, in Europe, Middle East and Africa, Flagging world economy relying on unstable energy boost”, 7/9/12, , “Analysis: Accessed 7/18/12, Chan) counterbalancing economic effects Long-term futures prices are certainly encouraging for policymakers trying to see through the fog. But the of spot prices go both ways and worries about oil supplies as much as demand come into play.¶ No sooner had Fresh nerves about the Iranian nuclear last month's EU summit lifted world markets generally, correlated spot oil prices perked back up too.¶ standoff and oil workers' strikes in Norway pumped crude back briefly above $100 per concern about barrel from fears that new money printing has tended to lows below $90 last month.¶ And from the developed-world central banks for years now "leak" into commodity markets means the latest wave of monetary easing tends to and prices at least underpin oil prices there too.¶ IMF economists poring over the question are quick to point out that the world economy has adapted relatively well to the supply disruptions and a pervasive market fear of long-term four-fold increase in oil prices in a decade but acknowledge that scarcity make price spikes higher a constant threat.¶ IMF In a recent article on the impact of oil prices on world growth, economist Decressin said growing consumption of oil-exporting countries used to recycle Jorg oil revenues in that windfalls back into western debt markets this buffer for western economies may be weakened means -- not because western interest rates are rock bottom least now anyway.
Aff - NU - Several SQ thumpers to oil market Oil markets face volatility—Iranian sanctions, Norwegian worker strikes, and low interest rates Reuters 7/9 (Mike Dolan, in Europe, Middle East and Africa, “Analysis: Flagging world economy relying on unstable energy boost”, 7/9/12, , Accessed 7/18/12, Chan) Long-term futures prices are certainly encouraging for policymakers trying to see through the fog. But the counterbalancing economic effects of spot prices go both ways and worries about oil supplies as much as demand come into play.¶ No sooner had last month's EU summit lifted world markets generally, correlated spot oil prices perked back up too.¶ Fresh nerves about the Iranian nuclear standoff and concern about oil workers' strikes in Norway pumped crude back briefly above $100 per barrel from lows below $90 last month.¶ And fears that new money printing from the developed-world central banks has for years now tended to "leak" into commodity markets and prices means the latest wave of monetary easing tends to at least underpin oil prices there too.¶ IMF economists poring over the question are quick to point out that the world economy has adapted relatively well to the four-fold increase in oil prices in a decade but acknowledge that supply disruptions and a pervasive market fear of long-term scarcity make price spikes higher a constant threat.¶ In a recent article on the impact of oil prices on world growth, IMF economist Jorg Decressin said growing consumption of oil revenues in oil-exporting countries that used to recycle windfalls back into western debt markets means this buffer for western economies may be weakened -- not least because western interest rates are rock bottom now anyway.