Oil at $90 Is Bad for China and Europe Growth, But Not US
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Supply shortages have lifted oil prices by $30 since December 2021, taking the price of a barrel to near $90. How will this affect the world’s biggest economies? Bloomberg Economics estimates the drag on growth ranges from near zero in the US, to 0.2 percentage point in China, and 0.8 percentage point in the euro area. Amped up US oil production and reduced energy intensity of output globally mean the drag from rising prices is smaller than in the past.
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