When Fear Trumps Markets: Is The $100/bbl Oil Inevitable?

Is $100 a barrel (bbl) inevitable? Brent crude is now trading at $82/bbl, a four-year high, and most analysts believe it won’t stop there. The geopolitical and global financial climate is certainly hospitable to rising oil prices: Saudi Arabia’s Jamal Khashoggi crisis, the specter of Iran sanctions, turmoil in heavy oil-producing states like Venezuela and Libya, and strong economic growth in China and India are driving a 1.5 million barrel per day (b/d) rise in global oil demand. There is a chance, however, that OPEC greed and global macroeconomic headwinds keep a lid on global prices.