Oil / Commodities - JPM is analyzing what a surge in oil to $150 a barrel this quarter could mean for the economy. Such a shock would be enough to reduce global growth by more than three quarters to around 0.9% in the first half of the year, versus the 4.1% they currently forecast. Inflation at the worldwide level would also more than double to 7.2% rather than the projected 3%. That could potentially force central banks to constrain monetary policy even faster than they now intend. The latest geopolitical tensions between Russia and Ukraine raise the risk of a material spike this quarter. After surging to its highest level since 2014 this week, oil retreated on Friday with Brent Crude at $87.62 a barrel.
Newsletter - January 22, 2022
Newsletter - January 22, 2022
Newsletter - January 22, 2022
Oil / Commodities - JPM is analyzing what a surge in oil to $150 a barrel this quarter could mean for the economy. Such a shock would be enough to reduce global growth by more than three quarters to around 0.9% in the first half of the year, versus the 4.1% they currently forecast. Inflation at the worldwide level would also more than double to 7.2% rather than the projected 3%. That could potentially force central banks to constrain monetary policy even faster than they now intend. The latest geopolitical tensions between Russia and Ukraine raise the risk of a material spike this quarter. After surging to its highest level since 2014 this week, oil retreated on Friday with Brent Crude at $87.62 a barrel.