Roubini: Oil Will Crash
Courtesy of Jay Yarow at ClusterStock’s GreenSheet
Nouriel Roubini proclaimed that oil prices ran "too high, too soon" when they doubled in just three months.
The run up in oil in the past few months has been driven by a weakened dollar and a belief that recovery is just around the corner. The dollar has been gaining the past few days and the price of oil has slipped. Roubini sees deflation and pressure on the dollar in the next two years, which could lead to the price of oil sliding.
As for the economic recovery? Don’t bet on it says Roubini. If it happens by year end it will be weak. There’s even a chance for a double-dip recession, which means the whole thing comes crashing down once again and the predictions of $85 oil go out the window.