Energy Markets
Dallas Fed study finds that oil shock hurt US GDP, but the message was resilience.
A new Dallas Fed study estimates that oil surging above $120 per barrel in spring of last year 'cut three-tenths a percentage points from U.S. economic output. However, the impact was only a fraction of the damage caused by a similar oil spike back in the 1980s when imports were more prevalent. After the U.S. supported war against Iran, which led to the closing of the Strait of Hormuz Shipping Lanes, the roughly 15% reduction in global oil supply impacted the commodity markets around the world. Prices rose and supplies became scarcer in some parts of the globe. Dallas Fed...