Economists: $100 Oil Won't Derail US Economy

Dallas TX

25 February, 2022

10:34 AM

Description

CBS Dallas/Fort Worth February 25, 2022 Russia's invasion of Ukraine has sent oil futures above $100 a barrel for the first time since 2014 and will probably bring $4-a-gallon gasoline to much of the US. But it won't be a major drag on American economic growth. Economists project that at most the nation's gross domestic product, the broadest measure of its economic activity, will have a few tenths of a percentage point shaved off its growth rate. With the economy growing very strong — GDP had its best growth since 1984 last year — America is expected to weather those higher prices just fine, even if drivers are grumbling. Currently the statewide gas price average for a gallon of regular unleaded fuel in Texas is $3.21. The positives and negatives for the US economy from an oil price hike come close to balancing each other out, noted Paul Ashworth, chief North American economist for Capital Economics. CBS Local Digital Media personalizes the global reach of CBS-owned and operated television and radio stations with a local perspective.