According to Bank of America, oil prices could rise above $ 100 per barrel for the first time since 2014 and provoke a global economic crisis.
Natural gas prices have already almost doubled their oil equivalent levels, and an increase in demand for diesel fuel may contribute to an even greater increase in oil prices. On Friday, the Bank said that with monetary and fiscal policy exhausted and energy costs rising as part of the output, it is possible for higher oil prices to provoke a macro-crisis.
The increase in crude oil production will be driven by three factors: the switch from gas to oil as a result of high gas prices, a surge in crude oil consumption due to a cold winter, and higher demand for aviation when the US reopens its borders.
When all these three factors are combined, oil prices may increase and the second round of global inflationary pressure will begin.
The Bank also stated that the price of diesel fuel may rise above $ 120 per barrel, while oil reserves will decline because refiners have been giving priority to the production of gasoline in recent months. At the same time, prices for other petroleum-based fuels used for heating have already risen, while the price of propane in the United States has reached its highest level since 2014.
In addition to the cold weather, commodities suffer from a lack of investment due to low returns and this will also contribute to an increase in oil prices in the long run.