Oil at $100 a barrel was considered inevitable not too long ago, as Wall Street strategists predicted a commodities supercycle. And it still remains in play, even with the omicron variant raging and Covid cases rising.
Goldman Sachs said $100 oil is a possibility in 2023 thanks to record demand. The firm believes omicron fears are overdone as governments combat the new variant with more testing than lockdowns. Today’s Chart of the Day looks at Brent crude in 2023 dollar terms, taking into account the street forecasts of inflation and its effect on the greenback. The result? It turns out oil was nearing that threshold anyway. As recently as October it was a mere $7.04 away from hitting $100 in 2023 dollar terms.
