MarketWatch: “Here’s the ‘danger zone’ for U.S. oil prices causing recession, according to DataTrek”
By datatrekresearch in IN THE NEWS
Excerpt from MarketWatch quoting DataTrek's Nick Colas:
.... "Oil prices recently jumped on worries over the fallout from escalated tensions in the Middle East, but not to levels that risk leading to a recession, according to DataTrek Research.
Based on recent U.S. oil prices of around $60 a barrel, “the danger zone” for West Texas Intermediate crude with respect to causing a U.S. recession is $120 a barrel, Nicholas Colas, co-founder of DataTrek Research, said in a note emailed Monday. That’s because history shows it takes “a doubling of WTI prices” for that to happen, he said.
“It will likely take a protracted bout of military action to get it there, but that is the level to worry about,” he said. Equity investors “are best served by maintaining exposure to the energy sector"....
Full article here on MarketWatch.
