Skip to content
Subscriber Only

Oil May Hit $100 This Winter and Spur Economic Crisis, BofA Says

Bloomberg business news
BofA’s Blanch Says Oil Market Has an Under-Investment Problem

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. 

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. 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.