Oil prices: benefits and drawbacks

Dubai: As oil pushes above the Organisation of Petroleum Exporting Countries $70-$80 price band, how will it impact the global economy when it is in dire need of a fast recovery?

Will higher oil prices spur a recovery or will they make things worse?

The answer is both, depending on which economy one is talking about.

Higher oil prices could make things worse for oil importing economies. However, they could impact positively on the Gulf oil exporters, Richard Samans, managing director of the World Economic Forum, said. "I think the recovery here will be different, partly because the economies are driven partly by oil exports,"

Samans thinks the price band of $60 to $70 provides a good balance for all. "I think essentially the economies here are growing and Dubai in particular has shown a great degree of resilience," he said.

However, he cautioned that higher oil prices could stoke inflation.