JP Morgan see WTI at 150.00 in 2023
Globe/wire say Cenovus, rivals see Brent at 7-year high
2022-01-20 08:16 ET - In the News
See In the News (C-CVE) Cenovus Energy Inc
The Globe and Mail reports in its Thursday, Jan. 20, edition that central bankers' inflation headache may be about to become more acute as they face the prospect of $100-plus oil that lifts consumers' price expectations and intensifies simmering wage-hike pressures (all figures U.S.). A Reuters dispatch to The Globe reports that Brent crude futures, which soared 50 per cent in 2021, are up a further 14 per cent already in 2022 at seven-year highs of $89 a barrel. With production capacity tight, inventories low and geopolitics racking several producing regions, oil is hurtling toward $100, a level Goldman Sachs predicts will be breached by midyear. JPMorgan predicts oil could reach $125 a barrel this year and $150 in 2023. It is possible the net impact of a $12-price rise from here would not be massive, as headline inflation rates already reflect jumps in energy prices from a year ago. Citi's inflation surprise indexes have hit record or multiyear peaks in Europe and elsewhere, indicating readings have come in higher than expected. If oil does hit $100 and stays there, it will throw into disarray policy makers' calculations. It could induce businesses to pass costs to consumers or workers to demand higher wages.