Oil prices to hit $100 | Sunday Observer

Oil prices to hit $100

23 January, 2022

Singapore (Bloomberg) --Surging demand, fading omicron fears, and OPEC+’s inability to ramp up output have underpinned an eye-watering rally in oil prices.

Global benchmark Brent crude has jumped 25% to around $88 a barrel since the end of November. Some in the market now think it’s now a question of when -- not if -- oil hits triple digits, somewhere it hasn’t been since 2014.

Goldman Sachs Group Inc. said this week it sees prices reaching $100 in the third quarter as consumption surprises to the upside. The cost of $100 call options for Brent’s December contract also surged to a record on Wednesday.

Crude at that level would add to the already considerable inflationary pressure in the global economy, causing a headache for central banks and governments. - Worldoil