With oil prices rallying in recent weeks, it looks like we are going to see $100 a barrel oil, John Catsimatidis, who is active in both the oil and food business, told FOX Business on Monday.
“With oil nearly at $84 this morning, we are going to see $100 oil, it looks like, there’s no sign of it stopping,” said Catsimatidis, who is chief executive of United Refining Company, and president and CEO of Gristedes, D’Agostino Foods, and the Red Apple Group.
“Food prices are going up tremendously,” Catsimatidis told FOX Business.
Food prices are going up very fast because nobody wants to be behind the curve, and everyone is raising prices, the executive said.
Catsimatidis expects prices to rise by 10 percent in the next 60 days, inflation not to go away any time soon, and supply-chain issues to likely persist through the middle of 2022.
The billionaire U.S. businessman with interests in the oil and food business, among others, is not alone in his forecast that oil prices could hit $100 per barrel.
Oil could hit $100 in case of a colder winter, some analysts and investment banks have said in recent weeks. Record-high natural gas prices are forcing some utilities to switch to oil derivatives instead, boosting demand for crude.
Surging natural gas prices, a cold winter, and the reopening of international airline travel could push oil prices to $100 per barrel and trigger the next economic crisis, Bank of America said in early October.
Recovering global oil demand could send oil prices to $100 a barrel at some point at the end of 2022, despite COVID challenges to demand this coming winter, according to one of the world’s largest independent oil traders, Trafigura.
It is “quite possible” that the WTI Crude oil prices reach $100 per barrel in light of growing global demand for energy commodities, Russian President Vladimir Putin said last week.
By Tsvetana Paraskova for Oilprice.com
More Top Reads From Oilprice.com:
- Will The U.S. Be Spared From The Global Energy Crisis?
- Canada’s Oil Stocks Are Trading At Bargain Basement Prices
- This Key Indicator Is Pointing To Higher Oil Prices