Many analysts expect the economy to witness recessionary pressures due to the lingering macroeconomic and geopolitical headwinds. Inflation has surged to its highest level in four decades and peace talks between Russia and Ukraine have shown no progress. As a result, supply disruptions continue to worsen, and energy and commodity prices remain at uncomfortably high levels.
Crude oil prices have been hovering above $100 per barrel. And historically, high crude oil prices have precipitated recessionary conditions. Moreover, the EU is contemplating banning Russian oil imports by the end of the year, and factory activity is shrinking in China, which may disrupt the crude oil supply further, leading to a surge in prices.
