HSBC warns rising oil price greater threat than Greece

HSBC's chief economist Stephen King has warned the rapidly rising oil price is a greater threat to the world economy and financial markets than a Greek default.

Oil hit a record 43-month high yesterday, following reports a Saudi Arabian pipeline had exploded. "With Greece disappearing, at least temporarily, from the headlines, investors have quickly found a new source of anxiety thanks to the recent surge in oil prices," said King. "If the trend persists, a fragile economic recovery in the developed world could quickly be derailed and inflation could return to emerging markets. This is exactly what happened a year ago." Brent crude jumped $5.74 to $128.40 per barrel in New York on Thursday, the highest since July 2008, although prices fell...