Tuesday, March 27, 2012

Roubini : I see Oil prices from here going higher, rather than lower

Nouriel Roubini : ...I would not underestimate the effect of gasoline today, in a number of U.S. states, being already at $4.00 a gallon -- and it could be so in many other states. Psychologically, once you're above the $4 mark, it has an impact on consumer confidence. And in the summer, prices tend to go up another 20 or 30 cents. The higher those oil prices are, the higher the chance that has a negative effect on consumer confidence, on disposable income, and on the economy. And it's not just in the U.S. -- the price of oil is very high in Europe and in many other parts of the world. So I would let other people assess the risk of a conflict, but confidently I see oil prices from here going higher, rather than lower. The one thing I worry about more than the Eurozone is oil. - in foreignpolicy.com
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