May 10, 2018

Wall Street bank predicts oil could hit $100 a barrel in 2019

The Nahr Bin Omar natural gas field, with flames rising from the burning of excess hydrocarbons. Photo: Haidar Mohammed Ali/AFP/Getty Images

Bank of America predicts that oil prices could spike to $100 a barrel next year, a price not seen since 2014, Bloomberg's Grant Smith reports.

Driving the assessment: The economic crisis in Venezuela has created oil supply problems, and President Trump's decision to withdraw the U.S. from the Iran nuclear deal and reimpose sanctions on the country have sent crude prices soaring. Meanwhile, world inventories are expected to shrink while demand has been on the rise.

  • Exacerbating it: OPEC has also been working with Russia on output limits, although those limits may not have staying power given Trump's Iran deal announcement, per Nasdaq.

Temper the assessment: Bank of America is the first Wall Street bank to make this prediction, and other banks haven't floated numbers this high. According to Smith, Goldman Sachs predicts Brent crude will hit $82.50 a barrel in the coming months, but sees prices subsiding in 2019.

Go deeper

Backed by the Fed, bond investors get bullish

Illustration: Sarah Grillo/Axios

The Fed's massive injections of liquidity have reopened much of the bond market, and after back-to-back weeks in which more than $100 billion flowed out of bond funds, investors have regained their bearings and now see opportunity.

What's happening: But after the hemorrhaging outflows relented last week, bulls may now be sticking their heads out a bit too far. Junk bond funds took in more than $7 billion for the week ended April 1, according to Refinitiv Lipper, setting a new weekly record.

What top CEOs fear telling America about the coronavirus shutdown

Illustration: Eniola Odetunde/Axios

Top CEOs, in private conversations and pleas to President Trump, are warning of economic catastrophe if America doesn't begin planning for a phased return to work as soon as May, corporate leaders tell Axios.

Why it matters: The CEOs say massive numbers of companies, big and small, could go under if business and government don't start urgent talks about ways groups of workers can return.

Health care workers vs. the coronavirus

Photo Illustration: Sarah Grillo/Axios. Photos: ANGELA WEISS/AFP via Getty Images, Bruce Bennett/Getty Images, and Europa Press News/Europa Press via Getty Images

Health care workers are at an especially high risk of catching the coronavirus, because of their prolonged exposure to patients who have it. Making matters worse, the U.S. doesn't have enough of the protective equipment, like masks and gloves, that keeps them safe.

And yet these workers, with loved ones of their own, keep showing up at hospitals across the country, knowing that more Americans than they can possibly care for are depending on them.

Go deeperArrow3 hours ago - Health