Wednesday, November 18, 2009

Roubini: Oil and Metals Near Top

Rallying commodities such as oil are due for a crash, as economic fundamentals cannot support any more meteoric rises, says New York University economist Nouriel Roubini.

The global economy is recovering but on a slow pace due in part to weak labor and credit markets, which will make demand for commodities low when compared to the supply.

That means a correction is due in 2010, Roubini tells Hard Assets Investor.

“Take oil prices: They have gone up from $30 a barrel to over $80, at a time when demand is back to 2005 levels, and oil inventory is at all-time highs,” Roubini says. (more)

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