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(Kitco News) - Commodities are shoving aside technology, said Francisco Blanch, global commodities head at Bank of America.
Blanch's interview with Bloomberg was published early this week. He talked about how the pandemic and the Russia-Ukraine conflict was impacting commodity markets, mostly oil.
Blanch previously had oil hitting $120 a barrel before the conflict due to a post-Covid demand recovery. Russia is a major oil exporter.
"What the Ukraine crisis has done has lifted the entire expectation by $25 to $35 a barrel, so we have a $150 a barrel target for the summer," said Blanch, adding that the average for the year should be $110.
Blanch said oil prices could spike even higher depending upon how far Russian sanctions go, seeing $200 plus as his "ugly scenario." He notes that oil is the backbone of the economy, which is a major input for travel, industry and agriculture.
Blanch referenced the acronym "FANG" referring to technology stocks Meta (FB) (formerly Facebook), Amazon (AMZN), Netflix (NFLX), and Alphabet (GOOG). Technology stock performed strongly during the beginning of the pandemic, but commodities are now the focus.