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Demand destruction is on its way

Which ends first: the oil market's bull run, or the global economic recovery?

OIL PRICES are too high. Even before Libya descended into anarchy, prompting the surge in crude markets that has taken Brent to between $110 and $120 a barrel, the International Energy Agency (IEA) said the "danger zone" had been breached. By January, spending on oil imports in the rich countries of the OECD had reached levels last seen in 2008, the agency said. Global recession followed the price spike of 2008, and it could do so again. Nouriel Roubini, the economist who gained fame for predicting the financial crash, says the latest rally is particularly ominous for European economies. The volume of extra cash now being spent by the world's biggest importers because of the latest price ju

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