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10-03-2022, 12:32 PM
https://finance.yahoo.com/news/oil-price...06948.html
Oil prices at $200 is no longer crazy, analyst says in dire warning
The rally in crude oil prices may have a long way to go, warns one top strategist.
"It is not unfathomable for prices to rocket to $200 a barrel by summer, spur a recession and end the year closer to $50 a barrel ($200 call options have been bid). To be clear, this is not our base case, but such a scenario does not sound implausible today. Two weeks ago, such a notion would have been ludicrous. Brent traded in a $20 range over the past 24 hours. Nothing sounds crazy, anymore," said RBC Capital Markets analyst Michael Tran.
On Wednesday, Brent crude oil prices traded around $127 a barrel as traders digested the Biden administration's ban of imports of Russian oil, liquefied natural gas and coal in response to the country's war on Ukraine.
Oil prices have surged roughly 31% since Russia's invasion of Ukraine as the U.S. and its allies have slapped the country with debilitating sanctions.
Adds Tran, "This is the tightest fundamental backdrop in years and the developments in Russia/Ukraine have ignited a market that was already a coiled spring."
Oil prices at $200 is no longer crazy, analyst says in dire warning
The rally in crude oil prices may have a long way to go, warns one top strategist.
"It is not unfathomable for prices to rocket to $200 a barrel by summer, spur a recession and end the year closer to $50 a barrel ($200 call options have been bid). To be clear, this is not our base case, but such a scenario does not sound implausible today. Two weeks ago, such a notion would have been ludicrous. Brent traded in a $20 range over the past 24 hours. Nothing sounds crazy, anymore," said RBC Capital Markets analyst Michael Tran.
On Wednesday, Brent crude oil prices traded around $127 a barrel as traders digested the Biden administration's ban of imports of Russian oil, liquefied natural gas and coal in response to the country's war on Ukraine.
Oil prices have surged roughly 31% since Russia's invasion of Ukraine as the U.S. and its allies have slapped the country with debilitating sanctions.
Adds Tran, "This is the tightest fundamental backdrop in years and the developments in Russia/Ukraine have ignited a market that was already a coiled spring."
