Schroders' Brown: Oil to fall back in near term

Oil prices should fall back in the near term provided unrest is contained within Libya, says Schroders' CIO Alan Brown.

The protests in the Middle East are potential stumbling blocks for economic recovery, he adds, but he is confident the oil price will be kept under control by Saudi Arabia. "We say that because the Saudis have said they are perfectly happy to turn on the taps and announcements about the strategic reserves being ready to release a million or two barrels a day, which between the two of them could easily make up for the short-fall in Libyan supply. So provided everything stops where it is, I suspect we will get some relief in oil prices in the near-term." The soaring oil price has had an...