When oil costs double or extra in a 12 months, unhealthy issues typically occur. Generally that could be a recession, as in 1974, 1980 or 2001. Different occasions, a recession has simply began, as in 1990 or 2008. On Monday, the worldwide crude oil benchmark briefly spiked to $139 a barrel, doubling from a 12 months in the past, as an embargo on Russian oil exports was mentioned. Are these gloomy historic parallels justified, or may this be extra like 2017, when oil doubled and every thing was hunky-dory?
The 2 finest comparisons for what’s going on are 1974 and 1979-81, however they bring about completely different explanations for what would possibly occur subsequent.
