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.

“Part of the increase is justified by fundamentals. But part of it is essentially this wall of liquidity chasing assets, and the effect of carry trade on the U.S. dollar, driving further higher these commodity prices.”

Even precious metals, which also rise when the dollar is weak, are too high and are due for a break from their rally, Roubini says.

A weak dollar, low interest rates, and high oil prices made up the scenario in 2008 which helped fuel the economic meltdown and a repeat of that would lead to what Roubini calls a “double-dip recovery.”

Others fear the same possibility.

“Many factors are the same as the summer of 2008,” Ethan Harris, head of global economics at Bank of America Merrill Lynch in New York, told Reuters.

“What are the things that would derail the recovery? I think that an oil price bubble is near the top of the list.”