How would the economy handle $200 oil? Here’s what one simulation found

Oil has been one of the most volatile assets since the Russian invasion of Ukraine as traders balance the impact of sanctions with both the likelihood of increased production elsewhere and the possibility that high prices would knock demand.

While West Texas intermediate CL.1 was trading around $107 on Tuesday, it’s not inconceivable to think oil could reach $200. One hedge fund trader has been making that case.

Erik…