BERLIN, Aug 4 (AFP) - German Finance Minister Hans Eichel expressed concern Wednesday that surging oil prices could steer the recovery of the global economy off course.
"The oil price is a worry. It could put the brakes on the global economy," Eichel said following a meeting here with his Italian counterpart Domenico Siniscalco.
Oil prices shot up to new record highs on Wednesday, fuelled by fears there is not sufficent supply to meet guzzling global demand.
New York`s reference contract, light sweet crude for delivery in September, rose 15 cents to a new peak of 44.30 dollars per barrel in electronic deals.
London`s Brent North Sea crude oil for September delivery climbed 35 cents to a record 40.99 dollars a barrel, breaking through a previous best of 40.95 dollars seen in October 1990 after the Iraqi invasion of Kuwait.
"Since Germany benefits from exports, even more than Italy, we have cause to be concerned," Eichel continued.
Germany, the eurozone`s biggest economy, does at least seem to be emerging from three long years in the doldrums.
But growth is driven solely by exports, while domestic demand remains the Achilles` heel of recovery as household consumption is hurt by high unemployment and the painful reforms of Germany`s social welfare system.