FXStreet reports that strategists at JP Morgan expect price pressures will persist and lead to higher inflation.
“Our base case remains that Brent prices average $70-$80 in 4Q21 as global inventories are restocked and global consumption continues to recover. We acknowledge that persistent supply chain constraints present some upside risk to this outlook. With that said, it should be emphasized the OPEC+ has plenty of capacity to ramp up production and could do so if prices continue to move higher.”
“Going forward, its likely oil prices will remain elevated over the medium-term, keeping headline inflation above 3% through mid-2022.”