Originally Posted by
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It hit $150 in 2008 IIRC, which with $4/gal gas was when the economy started to crumble.
$4 in 2008 is $6 in 2026, but wait, there's more. CAFE average fleet fuel economy was ~25 mpg in 2008, today it's ~34, a 35% increase. So $4 gas has a similar effect to the overall economy as $8 would in 2026.
Except the price of oil affects a lot more than what you pay for auto gas. Pretty much every physical product you can buy, goes through multiple shipping stages. And then you've got things like jet fuel -- if you saw Scott's note today, oil at $175/bl will cost United 250 percent of its best-ever annual profits. I could go on, but auto gas is just one small component of the price shock that's coming if this war continues much longer. We've seen this movie before. "Stagflation II: Trumpflation" will be one for the history books.