The big news of the day: OIl has once again hit $100 per barrel.
Unfortunately this comes at a time when the economy is behaving unimpressively already.
And in fact, there’s a decent history of oil price spikes preceding recessions.
It’s not every recession, and not every oil surge has caused a recession, but as you can see in this chart of monthly crude prices going back a few decades, there’s definitely a relationship between the spikes, and the grey shaded bars that indicate recession.
Note: This monthly chart from the St. Louis Federal Reserve is not updated with the current price. The point is to show the history of oil spikes and recessions.