Oil price to hit eurozone recovery

THE eurozone economy is picking up momentum, the European Central Bank says, but strong oil prices could derail the recovery.

In its monthly bulletin, the ECB says the Eurozone economy has grown steadily helped by the international upturn led by the US, but it warns that it could be damaged by soaring fuel costs.

"The governing council remains confident that the improvement in economic activity will continue. The conditions for a broadening and strengthening of the upturn are in place," the bank said in its August report.