Middle East unrest could push oil over $140: Roubini

Nouriel Roubini, an economist who predicted the credit-market collapse, said an expansion of troubles in the Mideast could push oil prices as high as $140 to $150 per barrel, triggering a double-dip recession in parts of Europe.

“If troubles spread to other countries such as Bahrain and Saudi Arabia, this could push oil prices up to $140 to $150 per barrel, which could trigger a double-dip recession in the periphery of Europe and the U.K.,” Roubini said at a conference in Paris Wednesday.

“We need to worry about inflation” because of the rise in commodity prices and large parts of public deficits being monetized in some countries, Roubini said.

The “slack in labor and goods markets will not lead to a significant rise in core inflation or to second-round effects.” 

(Bloomberg)