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 US$140-US$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 US$140 to US$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.
“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.”
That news is very bad because oil is a back bone of industrial sector of a country. Without oil, developed countries like USA UK Germany Japan are getting effected badly and Inflation are also increasing there.
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