English
Market News JPMorgan says oil prices can rise to $150, and the U.S. economy can handle it!
JPMorgan says oil prices can rise to $150, and the U.S. economy can handle it!
On June 7, Kolanovich, co-head of global research at JPMorgan, said that oil prices can continue to rise, and the U.S. economy is strong enough to deal with oil prices as high as $150 a barrel.
2022-06-08
8945
On June 7, JPMorgan Chase global research co-head Kolanovic (Marko Kolanovic) said that oil prices can continue to rise, and the U.S. economy is strong enough to deal with oil prices as high as $150 a barrel.
"Oil prices could spike further, especially given the situation in Europe and the war in Ukraine, so we wouldn't be surprised," he said in an interview on Tuesday. "But it could be a short-lived peak, and ultimately, to some extent, Oil prices will return to normal."
WTI crude traded near a three-month high and settled at $119.41 a barrel on Tuesday, up 0.77%. Brent crude settled at $120.57. The optimism comes as some countries in Asia lift coronavirus lockdowns, opening the door to higher crude demand and more upside for oil prices.
"We think consumers can afford $130 or $135 because we experienced that from 2010 to 2014," Kolanovic said. "It's basically that level when adjusted for inflation. So we think Consumers can accept that."
Kolanovich's basic view is that the U.S. and global economies will avoid recession. But at a financial conference last week, JPMorgan Chairman and Chief Executive Jamie Dimon told investors he was bracing for an economic "hurricane" that could be a "hurricane" Small Storm or Super Hurricane Sandy".
Kolanovic believes it is crucial to be prepared for all possibilities. "We do expect some slowdown in U.S. economic growth, and no one is saying there's no problem," he said.
His firm's official year-end target for the S&P 500 is 4,900. But Kolanovich speculated in a recent report that the index would end the year at around 4,800, still in line with the all-time high hit on Jan. 4. Currently, the S&P 500 is 16% below its all-time high.
Kolanovic remains the most bullish on the energy sector in U.S. stocks, a sector he has been bullish on since 2019. In addition, he is bullish on small-cap and high-beta technology stocks that have been hit hard this year.
(Daily chart of Brent crude oil main contract)
GMT+8 At 9:43 on June 8, the price of the main Brent crude oil contract was reported at $120.69 per barrel.
"Oil prices could spike further, especially given the situation in Europe and the war in Ukraine, so we wouldn't be surprised," he said in an interview on Tuesday. "But it could be a short-lived peak, and ultimately, to some extent, Oil prices will return to normal."
WTI crude traded near a three-month high and settled at $119.41 a barrel on Tuesday, up 0.77%. Brent crude settled at $120.57. The optimism comes as some countries in Asia lift coronavirus lockdowns, opening the door to higher crude demand and more upside for oil prices.
"We think consumers can afford $130 or $135 because we experienced that from 2010 to 2014," Kolanovic said. "It's basically that level when adjusted for inflation. So we think Consumers can accept that."
Kolanovich's basic view is that the U.S. and global economies will avoid recession. But at a financial conference last week, JPMorgan Chairman and Chief Executive Jamie Dimon told investors he was bracing for an economic "hurricane" that could be a "hurricane" Small Storm or Super Hurricane Sandy".
Kolanovic believes it is crucial to be prepared for all possibilities. "We do expect some slowdown in U.S. economic growth, and no one is saying there's no problem," he said.
His firm's official year-end target for the S&P 500 is 4,900. But Kolanovich speculated in a recent report that the index would end the year at around 4,800, still in line with the all-time high hit on Jan. 4. Currently, the S&P 500 is 16% below its all-time high.
Kolanovic remains the most bullish on the energy sector in U.S. stocks, a sector he has been bullish on since 2019. In addition, he is bullish on small-cap and high-beta technology stocks that have been hit hard this year.
(Daily chart of Brent crude oil main contract)
GMT+8 At 9:43 on June 8, the price of the main Brent crude oil contract was reported at $120.69 per barrel.
Bonus rebate to help investors grow in the trading world!
Or try Free Demo Trading
