Here’s what happened to the global economy the last eight times oil prices have doubled

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Here’s what happened to the global economy the last eight times oil prices have doubled
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If oil prices stay below triple digits, the economic consequences are not likely to be great. But if not...

The attacks on Saudi Arabia that have sent crude-oil prices surging are certainly the story for financial markets on Monday. Whether they are more than just a fleeting headline depends on just how long production is knocked out or whether the facilities get attacked again.

It’s worth pointing out that even with the big 10% rally in crude-oil prices, Brent crude prices BRN00, -1.67% , trading around $65 a barrel, are still below year-earlier levels. On Sept. 17, 2018, Brent traded at $78.40. So, deep breath. If oil prices stay below triple digits — $100 a barrel translate to roughly $3.57 a gallon at the pump — the economic consequences are not likely to be great.

The Fed wasn’t sure whether oil prices caused recessions or simply was a proxy for other determinants of the business cycle.

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