'Oil prices could double by 2022', warns IMF report

London, May 15 (ANI): A report by the International Monetary Fund (IMF) has warned that oil prices could double over the next decade with sweeping implications for the global economy.

The new IMF report comes, as the value of crude on world markets remains at the historically high level of 110 dollars a barrel.

According to the Telegraph, the working paper warned a combination of rising demand and constrained supply could have major consequences.

"Our prediction of small further increases in world oil production comes at the expense of a near doubling, permanently, of real oil prices over the coming decade," the report said.

"This is uncharted territory for the world economy, which has never experienced such prices for more than a few months," it added.

The research suggested energy accounted for up to 50 percent of overall gross domestic product, meaning 'the implications of lower oil output growth for GDP could be very large.'

According to the paper, brent crude oil spiked to above 120 dollars a barrel in the early part of 2012, but was trading yesterday at about 110 dollars a barrel.

That was the lowest since January, but still very high by historical standards. (ANI)