Saturday, March 19, 2011

Roubini on The Middle East unrest and its implications on the Oil Prices

In an article entitled : Global stakes of Mideast turmoil dated 19 March 2011 on the Professor Nouriel Roubini gives a detailed analysis on the situation in the middle east and the possible implications on the global economy especially the rising oil prices he wrote "Severe unrest in the Middle East has historically been a source of oil-price spikes, which in turn have triggered three of the last five global recessions. The Yom Kippur War in 1973 caused a sharp increase in oil prices, leading to the global stagflation of 1974-1975. The Iranian revolution in 1979 led to a similar stagflationary increase in oil prices, which culminated in the recession of 1980-1981. And Iraq's invasion of Kuwait in August 1990 led to a spike in oil prices at a time when a U.S. banking crisis was already tipping America into recession."
read full article here >>>

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