Crude oil has been showing great performance lately and the price is steadily rising. Brent has consolidated above $80. However, if prices continue to increase, it may have severe consequences for the entire world.
Bank of America analysts warn that if oil prices break the barrier of $100 per barrel any time soon, a serious economic crisis will be inevitable. Indeed, there are reasons for being worried. Nowadays, there are many factors boosting oil prices. The restoration of production capacity, the re-opening of borders for tourism and travel, an increase in the number of flights, and the looming winter - all this is driving commodity quotes and oil prices in particular. On top of that, amid a record spike in the price of natural gas, as well as its shortage, many consumers start using oil. This trend will only get stronger in winter.
Bank of America analysts suggest that oil will soar to $120 per barrel. "If all these factors come together, oil prices could spike and lead to a second round of inflationary pressures around the world," they emphasized. North Sea Brent Crude has already surpassed $83 per barrel, its highest level since autumn 2018. An increase in the quote came amid higher demand in the wake of a steady economic recovery.
