Morgan Stanley: If oil prices rise to $120 per barrel, it could pose a serious risk to Asian economies.

Analysts at Morgan Stanley stated in a research report that if oil prices rise to $120 per barrel, it may pose a significant risk to growth in Asia. These analysts estimate that a continuous increase of $10 per barrel in oil prices could directly drag down Asia's GDP growth by 20-30 basis points. They pointed out that if oil prices rise to $120 per barrel, Asia's burden of oil and natural gas will account for 6.3% of GDP. They said that if conflicts continue and commodity prices remain high, the policy space for mitigation will also be weakened. They added that if conflicts persist, central banks in the Philippines, Indonesia, India, and South Korea may have to raise interest rates starting from the end of the third quarter or the fourth quarter.