OIL price increases and a sell off of US debt could lead to a crash in the not too distant future, Bloxham Stockbokers has warned.

In his weekly note Bloxham economist Mr Alan McQuaid has warned that another oil price shock could be on the way. He also points to the signs that foreign central banks may be about to sell off their massive holding of US Government debt.

According to Mr McQuaid oil prices have already hit an eight month high because of growing demands in emerging economies and production bottlenecks and political uncertainty in Saudi Arabia Nigeria and Venezuela.

Mr McQuaid also points out that foreign holders of US debt have grown since 1970 to over 25 per cent, the highest ever percentage in US history.

According to Mr McQuaid there is now evidence that these are poised to pull out of US Treasuries.

"If and when that happens the resulting fallout in global financial markets will be clear for all to see."