High oil prices have `manageable` impact on global economy: IMF

"We expect that prices will remain high and be volatile going forward," IMF spokesman David Hawley said at a news briefing, when asked about the impact of a record-breaking surge near the 100-dollar a barrel level.

"The output effects of higher oil prices, however, appear manageable, in particular to the extent that price rises are being driven by sustained, strong demand growth in emerging markets such as China rather than supply shortfalls," he was quoted by AFP as saying.

The impact of the oil surge on the overall world economy "is likely to be moderate," he added.

Hawley said the price surge has been catalyzed by heightened geopolitical risks and by bad weather in the Gulf of Mexico.