STOCK MARKETS MUST LEARN TO LIVE WITH HIGHER OIL PRICES, SAYS ANALYST

SINGAPORE, March 26 (Bernama) -- The global economy and share markets have
no choice but to live with current oil price levels as fears regarding a
Japanese nuclear meltdown is beginning to ease, says an analyst.

Dr Shane Oliver, Head of Investment Strategy and Chief Economist at AMP
Capital Investors, said the focus has returned to tensions in the Middle East
and European debt problems.

"Upwards pressure on the oil price has resumed following the UN authorised
international intervention in Libya led by the US and Europe and ongoing
problems in Bahrain, Yemen and elsewhere in the region," he told Bernama in his
weekly review of the global economy.

Oliver said if the Middle East turmoil remained contained without further
supply disruption then oil prices would stabilise at around current levels and
the issue would simply become background noise for markets rather than being a
major negative.

Shares are leading indicators of economic activity and the message from the
rebound of last week is that the correction is over.

He added that shares were still cheap and were in the process of resuming
their cyclical recovery.