Big #Bankers #Fear HUGE Surge in #Oil Prices - Here Comes #Hyperinflation

 

$115 oil is coming very soon, Goldman Sachs warns

From CNN Business' Matt Egan

Oil prices are likely to spike to $115 a barrel in the coming weeks and other major commodities like wheat, palladium and European natural gas will rise sharply in the aftermath of Russia’s invasion of Ukraine, Goldman Sachs said Sunday evening.

The Goldman Sachs call specifically cited new sanctions levied by the West on Russia in recent days aimed at punishing Moscow for the war.

“The hurdles that these sanctions will create for financial payments are likely to exacerbate the recent Russian commodity supply shock, already visible as Western and Chinese traders halting shipments,” Goldman Sachs economists wrote. “Barring a breakthrough in peace negotiations, we believe this leaves commodity prices having to rally sharply as we see demand destruction now the only significant remaining balancing mechanism.”

Oil prices have soared to seven-year highs in recent days due to concerns about a disruption in supply from Russia, the world’s No. 2 producer of oil.

Goldman Sachs is now raising its one-month Brent price forecast to $115 a barrel, compared with $95 previously. Brent crude, the world benchmark, spiked to nearly $106 a barrel last week before cooling off a bit. In recent trading on Monday, Brent was up 2.7% to $100.59 a barrel.

(Editor's Note: There are too many variables in the market to make an accurate prediction but don't be surprised if prices at the end pump double over the next year.  On top of the political mess, at the end of the day, we could run out of oil in 15-20 years and prices could climb well past $500 bringing us into a Brave New World.  So enjoy while you still can.)