Former BP Chairman Bob Dudley said six years ago that oil prices would be lower for longer. Today, analysts are instead predicting higher for longer, The Houston Chronicle reports.
Crude prices are at seven-year highs—above $80 a barrel—and analysts are betting that the bull market in energy has more room to run—at least through mid-2022. Some of the country’s biggest banks, such as Goldman Sachs, have forecast oil again reaching the mystical $100-a-barrel level; Bank of America is predicting oil will reach $120 by 2022.
The constrained supplies, due to lower production from both U.S. and global producers, coupled with the rebound in demand as the global economy emerges from the pandemic have led to rising energy prices that are far outpacing increases in other goods and services. The Labor Department, for example, recently reported that the cost of going out for dinner rose 4.5% during the 12-month period ending in September. Energy prices soared more than 40%. Read the full story.