Economics
Oil May Be About to Spike, and JPMorgan Has Trades to Play It
- Brent seen hitting $80 on Syrian war, potential Iran sanctions
- High-yield energy credit, loonie versus yen among bank’s calls
Photographer: David Paul Morris/Bloomberg
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Oil prices, already at more than three-year highs, may be about to jump further. And, to JPMorgan Chase & Co., crude-related assets are starting to look attractive.
Brent oil could spike to $80 a barrel if the U.S. and European Union reimpose sanctions on Iran and as Western powers expand the scope of the Syrian civil war, JPMorgan strategists, led by John Normand, wrote in a note on Friday. While this might ordinarily seen like a time to avoid cyclical assets, the recent "tax gift" to U.S. corporations and consumers makes it an opportunity to own petro assets, they said.