Rising natural gas prices, the cold winter, and the reopening of international flights could push up oil prices to $ 100 a barrel and trigger a further economic crisis, the Bank of America said.
Last month, the Bank predicted that oil prices could hit $ 100 a barrel in the next six months if we catch a cold winter, which could be a major driver of global energy markets in the coming months.
The US Central Bank has said that oil prices, which could rise to $ 100 a barrel, could lead to a global crisis.
In a statement released by Bloomberg on Friday, Boff A noted that gas could be a catalyst for high demand for oil, including high natural gas prices. Then, more than usual, the cold season will also increase energy demand and prices, and the reopening of US borders for international travel will increase the demand for jet fuel.
“If all these factors combined, oil prices could rise and lead to a second round of inflation,” Bofea analysts said in a statement.
According to Bloomberg, “put it another way, we may be just one hurricane from the next macro storm.”
Oil prices fell by more than $ 80 a barrel earlier this week, with rising commodity prices rising worldwide. High energy prices, including crude oil, are already set to hit higher inflation targets at the federal and central banks. Inflation pressures are often seen as reversible. However, sustained high oil prices put more pressure on prices.
Due to last year’s crisis and the deep-rooted investment in energy supply and government-driven zero-debt investment, Bofe is strong not only in oil but also in the long run.
“Many years of crude oil prices are now on the cards,” notes US Bank notes.
By Tsvetana Paraskova for Oilprice.com
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