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High oil prices big threat

Perhaps the biggest threat to the global economy is the rise of oil prices, even as news came of less demand recently for oil. ",Long-lasting, high, and volatile oil prices may increase inflationary pressures and slow growth,", the Group of 20 major industrial nations said in a prepared statement at the end of a two day meeting on the outskirts of the Chinese capital, Beijing.

Data released in the United States last Thursday demonstrated that demand for gasoline was stuck below year-ago levels. The figures overshadowed earlier forecasts of a rebound in consumption next year. ",While stocks once again saw significant draws, the market`s focus is currently set on seemingly weaker demand,", Citigroup analyst Doug Leggate said in a report.

The rise in oil prices has led to fears of high winter energy bills in the Northern Hemisphere, and earlier data showed that consumers in the U.S., Europe and China were not backing away from a high demand of oil supplies. Other issues putting the global economy at risk were currency issues, and this was discussed at the Beijing conference as well.