Roubini: There will be a SIGNIFICANT market correction

The price of oil, which is rising too fast, and long-term interest rates that are beginning to creep up are likely to suppress a budding recovery, famous economist Nouriel Roubini, also dubbed "Dr. Doom," told CNBC Monday.

"I see even the risk of a double-dip, W-shaped recessionÂ… towards of the end of next year," Roubini told "Squawk Box Europe."

"Oil could be closer to $100 a barrel towards the end of this year, this could be a negative shock to the economy," he said, adding that other dangers come from long-term interest rates and big budget deficits.

In the next few months, unemployment may reach 11 percent in the US and around 10 percent in Europe.

"There will be a significant market correction" in the coming months, as economic data will offer negative surprises, he said.

In Europe, the dangers came both from its weak economy and from exposure of Western European banks to Eastern European economies, he said. But protectionism is not an answer, Roubini warned.

"The reality is that too much protection would be dangerous," he said.

"In Europe there is a risk that even the single market is breaking down because of protectionism, let alone the rest of the world," Roubini added.

With reporting by Stephane Pedrazzi in Paris.