RE:Hedge funds are quietly offloading their shares I failed to mention the most important piece, this is what will kill the airlines.
US$185 Brent oil in view if Russian supply hit persists: JPMorgan
Brent crude could end the year at US$185 a barrel if Russian supply continues to be disrupted, JPMorgan Chase & Co. wrote in a note Thursday.
Oil prices have skyrocketed, with Brent crude approaching US$120 earlier Thursday as traders shun Russian oil after Moscow invaded Ukraine. U.S. President Joe Biden is facing calls to ban Russian imports of energy but so far has not imposed full blown sanctions on oil.
Currently, 66 per cent of Russian oil is struggling to find buyers, JP Morgan analysts including Natasha Kaneva said in the note.
In the short term, the scale of the supply shock is so large that oil prices need to reach and stay at US$120 a barrel for months to incentivize demand destruction, the analysts said, assuming there would be no immediate return of Iranian crude barrels.
* Hedge funds are have been trying to offload their shares to retail investors. Once retail investors are left holding the bag hedge funds wil short the craap of of airlines stocks and retail investors will once again lose all their money.