{"id":525758,"date":"2021-10-01T14:47:23","date_gmt":"2021-10-01T12:47:23","guid":{"rendered":"https:\/\/businesstech.co.za\/news\/?p=525758"},"modified":"2021-10-01T14:47:23","modified_gmt":"2021-10-01T12:47:23","slug":"oil-could-hit-100-and-spur-economic-crisis-bofa-says","status":"publish","type":"post","link":"https:\/\/businesstech.co.za\/news\/energy\/525758\/oil-could-hit-100-and-spur-economic-crisis-bofa-says\/","title":{"rendered":"Oil could hit $100 and spur economic crisis, BofA says"},"content":{"rendered":"

The global energy crunch could help propel oil prices above $100 a barrel for the first time since 2014 and spur a global economic crisis, according to Bank of America.<\/p>\n

Natural gas prices have already surged to almost double that level in oil-equivalent terms, and BofA says a spike in demand for diesel could push crude into similar territory.<\/p>\n

With monetary and fiscal policy stretched to the limit and energy costs rising as a share of economic output, higher oil prices could, in turn, create a macro crisis, the bank said Friday in a note.<\/p>\n

The boost to crude would be driven by three factors: gas-to-oil switching as a result of high gas prices, a jump in crude consumption over a cold winter and higher aviation demand as the US reopens its borders.<\/p>\n

\"\"<\/a><\/p>\n

\u201cIf all these factors come together, oil prices could spike and lead to a second round of inflationary pressures around the world,\u201d analysts including Francisco Blanch wrote in the note. \u201cPut differently, we may just be one storm away from the next macro hurricane.\u201d<\/p>\n

Diesel prices could climb above $120 a barrel, the bank said, with stockpiles falling as refiners prioritized the production of gasoline in recent months. Other oil-based fuels used in heating are already seeing an uplift, with US propane prices at their highest since 2014.<\/p>\n

As well as the cooler weather, BofA also said that underinvestment in commodities due to poor returns is also set to fuel higher oil prices in the longer-term.<\/p>\n

\u201cA multiyear run-up in crude oil prices is now in the cards,\u201d the bank said.<\/p>\n

\n

Read: Warning over new petrol and diesel rules for South Africa<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

The global energy crunch could help propel oil prices above $100 a barrel for the first time since 2014 and spur a global economic crisis, according to Bank of America.<\/p>\n","protected":false},"author":59,"featured_media":274449,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[9874],"tags":[5349,26],"class_list":["post-525758","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-energy","tag-bank-of-america","tag-headline"],"_links":{"self":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/525758","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/users\/59"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/comments?post=525758"}],"version-history":[{"count":1,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/525758\/revisions"}],"predecessor-version":[{"id":525762,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/posts\/525758\/revisions\/525762"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media\/274449"}],"wp:attachment":[{"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/media?parent=525758"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/categories?post=525758"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstech.co.za\/news\/wp-json\/wp\/v2\/tags?post=525758"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}