Oil prices have broken out of a "sweet spot" for global economic growth and could herald a U.S. recession if they keep rising, UBS warns.
The Swiss investment bank on Tuesday joined a chorus of financial institutions in pondering the economic impact of oil prices at $100 a barrel. Crude futures are trading near their highest levels in 3½ years, bolstered by strong demand, supply cuts from big producers, and mounting geopolitical tension in the Middle East and Venezuela.
International benchmark Brent crude has surged nearly 48 percent over the last year and has traded above $80 a barrel. Meanwhile, U.S. crude is up 43 percent, near $72 a barrel.