'Economic meltdown' if crude oil hits $200

The global economy would collapse if oil hit $200 a barrel, said the top energy analyst at Germany's largest bank.

"Two-hundred dollar oil would break the back of the global economy," Deutsche Bank AG's Chief Energy Economist Adam Sieminski said in an interview yesterday in Tokyo. "Next step after $200 would be global recession and bad news for everybody."

Sieminski's comments come after Goldman Sachs Group Inc forecast oil may rise to between $150 and $200 within two years as supply growth, especially from producers outside the Organization of Petroleum Exporting Countries, fails to keep pace with demand. Deutsche Bank is due to release its oil-price forecast on June 27.