An article that I found talks about the price rises in the last two years for oil and gas and how this could mean greater impacts due to the recession that is coming into view. Since the recession is coming into view many oil and gas prices are lowering which is greatly impacting the economy. It was stated that, “S&P 500 energy sector is down about 1.4% so far this year…Oil prices, meanwhile, fell by $2 per barrel as fears of a recession rise.” (CNN). This overall is very concerning for the economy and the oil and gas companies. There are five large companies that are already gearing to combat these fluctuations in prices. All in all, this article describes how these price fluctuations are affecting the economy and what is being planned for combating these changes.
Article: https://www.cnn.com/2023/04/21/investing/premarket-stocks-trading/index.html
3 comments:
Really interesting topic Annabel! Oil and gas I feel have been big economic discussions ever since the pandemic. How do you think the government will react to combat fluctuating oil prices and a lurking recession.
Hello Annabel,
Oil prices are a very important topic to understand and track, particularly during a time of upcoming recession. This is because oil prices usually represent other prices in the economy. Essentially, it tracks inflation. When oil prices are high, so are consumer goods prices. From my understanding, the U.S. is bound to fall into a recession within the next year or so. It will be important that we have low inflation during this recession to regenerate growth. With that said it is really good news that the price of oil is decreasing.
Overall, good post.
Very interesting topic. I was wondering how the government, economy, and people will react in response to high gas and oil prices and a fluctuating economy?
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