Kate Mackenzie Roubini warns of oil ‘double-whammy’

Count NYU economist Nouriel Roubini among those warning that oil could ruin chances of an economic recovery. Roubini, aka Dr Doom, said at a conference in Paris today:

“You see the worry of a double whammy, that by next year oil is towards a hundred (U.S. dollars per barrel), the budget deficits are not controlled … that could tip the global economy into another kind of relapse.”

On CNBC he repeated his views about the possibility of $100 oil, adding that equity markets, commodity markets and credit markets will see a decline. Roubini believes positive signs about a recovery should come in the form of improved unemployment figures, housing, industrial production, sales and consumption data – and he characterises any positive signs seen so far among those data as ‘yellow weeds’ rather than green shoots.