Brent: Here’s why oil could hit $80 by year end – JP Morgan
|Analysts at JP Morgan offer their take on why they expect oil prices to climb to $80 per barrel by this year-end.
Key quotes (via Barron’s)
The upcycle in energy prices is supported by a surge in demand as the world emerges from the pandemic and by “the unintended consequences of ESG [environmental, social and governance] and energy and transition policies,”
Such policies are “reducing fossil energy capacity faster than demand can switch to renewables.”
“Oil to surge beyond $80/barrel for Brent by year-end. Its 2022 year-end target is $62/barrel. “
“There is a risk of oil prices overshooting as the oil and gas industry reaches a tipping point due to chronic underinvestment.”
“Recommend investors to add commodity and commodity equity exposure to hedge the risk of more persistent inflation.”
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