Ready For A Double-Dip Recession?
Nouriel Roubini, the economist who correctly predicted the global financial crisis, warned on Thursday that some advanced economies could experience a double dip recession if the price of oil climbs to $140 a barrel.
“It the turmoil in the Middle East becomes much worse and the price of oil reaches $140-150 a barrel then the risk of a double dip recession increases,” Roubini said in a keynote speech here at MIPIM, the world’s annual gathering of real estate professionals.
World oil prices fell back Thursday after spiking sharply higher a day earlier, with New York’s main contract, light sweet crude for delivery in April, dropped 32 cents to $104.06 a barrel. Brent North Sea crude for April shed 51 cents to $115.43.
Several analysts have forecast oil could again reach the record $147 it set July 2008 before the onset of the global financial crisis if unrest spreads through the Middle East.
Remember, we have plenty of oil we could drill for, both on dry land and offshore, and the simple–and very well proven–law of supply and demand would cause the price to go down if we increased the supply of oil with our own wells. But of course, His Obamaness won’t allow that… so he gets to face the anger of the voters who “vote their wallets” in 2012.