Oil prices have come down below $100/barrel after staying above that level for much of last month. The Ukraine-Russia war worsened the upward trend costs for energy across the globe.
Yahoo Finance asked several experts what sustained prices above $100/barrel means for a risk of a recession in the U.S. and in other parts of the world. Most agree oil would have to stay closer to $130 in order to create enough demand destruction to spur a recession in this country. But some parts of the world are feeling the pain of high energy prices even more than in the U.S.
“The higher oil prices, specifically diesel is affecting many countries outside of the U.S. in Latin America, Africa and Southeast Asia. Coupled with rising food and natural gas prices, we could see those parts of the world slide into a recession first, dragging China, Europe and finally the U.S. into recessions of their own.
