Britannia Radio

"Dr. Doom" Roubini: Oil could "easily" rise above $100 again

Tuesday, November 10, 2009 From Nouriel Roubini in an interview with Hard Assets Investor: OPEC can manage prices marginally. The only supplier that has excess capacity that can use it to stabilize oil prices is Saudi Arabia. But once oil is above $80 like it is now, ETF demand, options demand, speculative demand, these can easily push it to above $100. I would say that if there were a reason we had the global recession last year, it wasn't just Lehman or the subprime mortgage problem; it was that when oil went to $145. That was a major, real trade shock negative, and a real disposable-income shock for the U.S., Europe, Japan, China and all the other oil-importing and commodity-importing nations around the world. That kept the world in recession when oil was at $145. Now, I feel that oil at $100 is going to tip the world into a double-dip recession. ...[L]ast year, when oil went to $145, half the world, like emerging markets, was growing very fast. But today, with the global economic collapse... Read full article... More on energy: A cheap and growing oil-services stock How to profit from the new natural gas cycle The only "green" energy that's actually profitable