The recent rise in the oil price is unlikely to pave the way for the return of petrodollar recycling that in the past has boosted emerging market asset prices, says David Lubin, head of emerging markets economics at Citigroup.

“Petrodollars supported emerging markets during the oil boom in a number of ways - by putting downward pressure on global risk-free rates; by creating additional demand for emerging markets securities; and through direct investments in some emerging economies by oil exporting countries.”