Monday, March 26, 2012

ROUBINI : Oil the biggest threat to fragile global economy

Nouriel Roubini : ‘If the drums of war grow louder, oil prices could rise in a way that will most likely cause a global growth slowdown’
TODAY’s fragile global economy faces many risks: the risk of another flare-up of the euro-zone crisis; the risk of a worse than expected slowdown in China; and the risk that economic recovery in the US will fizzle (yet again). But no risk is more serious than that posed by a further spike in oil prices. The price of a barrel of Brent crude, which was much less than $100 last year, peaked recently at $125. The reason is fear. Not only are oil supplies plentiful, but demand in the US and Europe has been lower. - Nouriel Roubini wrote in a recent Project Syndicate article
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