The world will enter into a new recession if oil prices reach $140 -150 per barrel

The possible increase in oil prices to $140-150 per barrel will cause a new recession in some developed economies, forecast the economist Nouriel Roubini and analysts from Deutsche Bank. “If oil prices rise to the levels from the summer of 2008, up to $140 per barrel, some of the developed economies will enter into double recession,” stated Roubini for reporters in Dubai, cited by Bloomberg. In the USA, where growth is accelerating rapidly, a jump in oil prices in the range of 15% - 20% will not cause a new economic recession but growth will be halted again.

Roubini emphasised that the European Central Bank would make a mistake by raising interest rates too soon. “Global economic recovery is fragile and pressed by debt issues, the countries in the periphery of the Eurozone are trying to improve the competitiveness of their exports,” announced the economist. According to experts from Deutsche Bank, the development of the current situation depends on whether oil prices are rising because of increased demand or because of reduced supply. Bank analysts commented that if oil suddenly hits $150 per barrel, the world will return to the dangerous zone of a new recession.

The riots in the Middle East and North Africa, where more than half of the proven oil reserves on the planet are, increased the price of Brent crude oil to $120 a barrel, reminded the agency.

Against the background of the civil war in Libya between Muammar Gaddafi and the rebels, Goldman Sachs raised its outlook for the Brent crude oil price for the second quarter of the year to $105 per barrel. According to the economic review of the Bulgarian National Bank, the price of black gold will move to levels in the range of $90 to $110 in the first quarter of the year.

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