Oil prices resumed their recent rally on Friday as the UN Security Council struggled to issue a meaningful response to the mounting crisis in Libya, where leader Muammar Gaddafi struck back at an uprising to end his 40-year rule.
West Texas Intermediate crude for March delivery climbed 1.42% to $98.69 per barrel, approaching the closely watched $100 mark, and Brent crude for delivery in April rose 1.05% to $112.52 - after retreating from Thursday's high of $119.79, Citywire.co.uk reports.
Nevertheless, Deutsche Bank said oil above US$120 a barrel would be an inflection point for global economic growth.
"$120/barrel is the level that oil as a share of global GDP starts to move above 5.5 per cent of GDP, which has historically been an environment where global growth has come under pressure."
While other analysts have not pencilled in a specific level where the global economy tips back into recession, analysts worry a sustained rise could crimp consumer and business spending while the threat of further uprisings taking out more production in other countries remains high, Windsor Star reports.
Two ballistic missiles attacked the US Navy destroyer USS Mason (DDG 87) from the territory of Yemen. The destroyer came to the aid of the hijacked Central Park tanker of Zodiac Maritime