Significant oil price rises predicted

The oil price is expected to flare up significantly in the coming months and could rise by 25% in 2011, international credit insurer Coface said on Tuesday. This will largely be driven by sociopolitical tension in oilexporting countries and reconstruction efforts in Japan, the world’s third largest oil importer. According to Coface, Brent oil prices are expected to rise by 25% in 2011 compared with an average of $100 per barrel in 2010. This will knock 0.1 to 0.2 points off GDP growth in the major oilimporting countries.