J.P. Morgan’s Marko Kolanovic predicts oil is surging higher — but so are stocks.
Kolanovic, who serves as the firm’s chief global markets strategist and co-head of global research, believes the U.S. economy is strong enough to handle oil prices as high as $150 a barrel.
“There could be some potential further spikes in oil, especially given… the situation in Europe and the war. So, we wouldn’t be surprised,” he told CNBC’s “Fast Money” on Tuesday. “But it could be a short-lived spike and eventually, sort of, normalize.”
WTI crude is trading around three month highs, settling up 0.77% to $119.41 a barrel on Tuesday. Brent crude closed at the $120.57 mark. The bullish move came as Shanghai reopened from a two month Covid-19 lockdown, opening the door for higher demand and more upside.
“We think the consumer can handle oil at $130, $135 because we had that back in 2010 to 2014. Inflation adjusted, that was basically the level. So, we…
