💵🛢 Crude spike above $100 a barrel could last longer than expected – experts
If the Strait of Hormuz remains closed for the next few weeks, the energy market will face far-reaching consequences, experts told the South China Morning Post.
It could “require demand destruction at levels that could push crude well into triple digits towards, or above, the crisis levels seen in 2022,” according to Hakan Kaya of the US investment firm Neuberger Berman.
💬 “When oil punches through $100, the energy market stops being just another asset class and starts behaving like the steering wheel of the global economy. Right now, that wheel is turning hard,” Stephen Innes of SPI Asset Management noted.
They were echoed by Gareth Pan from Pictet Asset Management, who warned that global oil prices “could continue to overshoot,” and if they rise too much, “they will act as a drag on demand, so there simply won’t be that much demand to be released.”
Brent crude earlier jumped 29% to $119 a barrel, while West Texas Intermediate spiked 24% to $113 per barrel. Both benchmarks are now trading at levels not seen since 2022.
