IMF Chief Warns Oil at $120-$130 Through Next Year Could Trigger Global Recession

The International Monetary Fund warned that a surge in oil prices stemming from the war in Iran could raise the risk of a global recession.

Walter Bloomberg reported on May 13 that IMF Managing Director Kristalina Georgieva said the global economy could fall into recession if crude prices remain in a $120 to $130 a barrel range through next year.

At those levels, global growth could slow to about 2%, she said, a pace consistent with recession-like conditions. She added that prolonged pressure from higher energy prices would place a significant burden on global demand and economic stability.

Brent crude, the international benchmark, was trading in the upper $107-a-barrel range as of May 13, according to Trading Economics.