The price of oil may exceed a critical limit – The economist reveals the reason

OP: n senior market economist Jari Hännikäinen predicts that the price of oil will break through the hundred dollar barrel price limit in the near future. In the background is still the ongoing war with Iran.

“The situation in the Middle East is very unclear at the moment. It seems that the consensus on the end of the war has crumbled, and now there is rather a fear of the war escalating to something bigger than it is now.”

Watch the entire Talousamau broadcast below. Hännikäinen’s part starts at 13:07.

Hännikäinen, who visited Kauppalehti’s Talousaamu on Thursday, highlights the hectic situation in the Middle East and points out that things can change even on a fast schedule.

“Although an oil price level of one hundred dollars is possible, the US administration has a strong interest in calming the situation and opening the Strait of Hormuz.”

Previously, Iran and the United States reached a so-called agreement of intent, within the framework of which the two countries were to agree on peace in the longer term. After the cancellation of the peace agreement, the market has fluctuated, which Hännikäinen describes as expected.

“The market does not like uncertainty, which has been reflected in increased volatility.”

According to Hännikäinen, the war creates upward pressure on inflation, because the increased energy costs swim directly into the prices of consumer products.