Oil likely to hit $100 a barrel, say top commodity traders – FT

As WTI jumps to the highest since 2019, above $72.00, the Financial Times (FT) conveyed top commodity forecasters’ expectations from the oil prices.

The reporter reached to executives from Vitol, Glencore and Trafigura and Goldman Sachs while writing on Tuesday, “$100 crude was a real possibility, with prices already reaching their highest level in two years.”

“The prediction comes at a time when concern about inflation is rising and many commodities, such as copper, have already reached record highs, boosted by supply shortfalls as the economic recovery gathers pace,” added FT.

While describing the broad energy price moves, the FT said, “Oil has not traded above $100 a barrel since 2014, when a surge in supplies from the US shale sector brought the last so-called supercycle to an end. At the start of this century, oil prices rallied from near $10 a barrel to reach above $100 in 2008, boosted by growing Chinese demand. Prices, while volatile, averaged around $100 a barrel for the next six years.”

Elsewhere, the Associated Press (AP) came out with the headlines suggesting that the US Federal judge blocks President Joe Biden's administration's suspension of new oil and gas leases on federal land and water.

Read: WTI prints fresh cycle highs through $72