09/01/2026
⛽ What Can the Price of Oil Tell Us About the Economy?
Oil prices aren’t just about what you pay at the gas pump. They can be an important signal for the economy—and potentially the stock market.
On the latest episode of the SFS Power Up Wealth Podcast, Mikal Aune sits down with James Derrick to discuss why rising oil prices can make the economy more vulnerable.
Here are a few key takeaways:
🛢️ Oil impacts nearly everything.
Transportation, shipping, manufacturing, and everyday goods are all affected by the price of oil.
📈 Higher oil prices can fuel inflation.
As energy costs rise, those increases can work their way through the economy.
🏦 The Fed may have less flexibility.
If inflation remains elevated, the Federal Reserve may have a harder time lowering interest rates—even if the economy begins to weaken.
🏠 Higher oil prices can mean higher interest rates.
And that can make mortgages and other borrowing more expensive.
📉 But high oil prices don’t automatically mean a recession.
They can make the economy more vulnerable, but there are important differences between today and past periods, such as 2008.
One major difference? U.S. energy production.
The United States produces far more oil today than it did in 2008, meaning higher oil prices can also benefit American energy companies and investors.
The big takeaway? Pay attention to oil—but don’t let one economic indicator dictate your investment decisions. A diversified, long-term approach can help you participate in what’s working while staying focused on the bigger picture.
🎧 Listen to the latest episode of Power Up Wealth to hear the full conversation at the link in our bio.
