Gas prices may inch down — but that’s not all good news
There’s good news and bad news on the gas prices front. Good news: Some price relief could be on the way. The bad news: It’s because traders are betting on a recession.In simple terms, there are two ways to bring down prices: Increase supply or reduce demand. The former is costly and complicated. The latter happens when consumers start pulling back because prices have risen too much and individual budgets are strained. That’s what appears to have happened this spring, as Americans watched gas prices soar above $5 a gallon and overall inflation top four-decade highs.
Although that might spell relief at the fuel pump, it may also signal a different kind of economic pain on the horizon.
“This morning’s market action has recession worries written all over it,” wrote Peter Boockvar, the chief investment officer at Bleakley Advisory Group. He put the odds of a recession this year at 99% because “nothing is 100%.”
Prices of oil spiked to…