Oil at $120 inflection for global economic growth: Deutsche

Deutsche Bank said on Thursday oil above USD 120 a barrel would be an inflection point for global economic growth.

"It (oil) is certainly edging closer to a level that is viewed by our colleagues as a key threat to global growth," Deutsche said in its morning fixed income research note. "USD 120/barrel is the level that oil as a share of global GDP starts to move above 5.5% of GDP, which has historically been an environment where global growth has come under pressure." It said, however, that for oil to climb above USD 120 a barrel there must have been serious disruption to Saudi Oil supplies or another independent reason and added that this level "will be an inflection point for global growth."