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Home Economic Fundamentals UK Economic Barclays, Bank of America: Oil to surpass $100 a barrel
Barclays, Bank of America: Oil to surpass $100 a barrel PDF Print E-mail
UK Economic
Written by Sam Coventry   
Friday, 19 February 2010 10:58
A look at some the morning's top economic themes: Barclays, Bank of America Corp, economists back Darling, JPMorgan and Toyota.
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Bank of America Corp (NYSE:BAC) and Barclays (LON:BARC) two leading oil traders, have told clients to brace for crude above $100 (£64) a barrel by next year.

Analysts at the two investment banks have warned that they see crude trading well above this watershed level for over a decade.

This is a stark contrast from recessions in the 1980s and 1990s, when it took years to work off excess drilling capacity built in the boom.

"Oil has the potential to flirt with $100 this year. We forecast an average price of $137 by 2015," said Amrita Sen, an oil expert at Barclays.

The price has doubled to $78 in the last year.

Meaanwhile, analysts at Barclays also cut their forecasts for the pound, citing UK “monetary policy and fiscal concerns.”

The British currency will trade at $1.53 and 88 pence per euro in three months and $1.67 and 84 pence in 12 months, Paul Robinson, a foreign-exchange strategist at Barclays Capital in London, wrote in a report today.

Barclays had predicted the pound would end the year at $1.73.

Darling backed by economists


While Barclays analysts have expressed concerns that the fiscal situation will impact the pound a gang of leading economists have put their support behind the Chancellor's handling of the recession.

More than 60 leading economists have backed Alistair Darling’s decision to delay spending cuts until 2011, creating a dividing line within the profession on the crucial general election issue of how to tackle the UK’s huge public debt.

Two letters in Friday’s Financial Times warn of the risks of damaging Britain’s fragile recovery by “reckless” early cuts.

They are a riposte to the 20 economists who wrote to The Sunday Times last weekend supporting the Conservative party’s argument that fiscal tightening should start this year, the FT reports.

JPMorgan Chase


JPMorgan Chase (NYSE:JPM) has suspended an analyst amid accusations that he deceitfully gained access to a meeting Asda held with suppliers.

Rickin Thakrar, a food retail analyst at the investment bank, wrote an explosive 14-page research note with information gained from a suppliers meeting held last week, despite having allegedly been struck off from the delegate list by the organisers, the Times reports.

Toyota

Akio Toyoda, Toyota’s embattled chief executive, agreed on Thursday to appear before a US congressional committee investigating his company as lawmakers stepped up their scrutiny of the Japanese carmaker with a subpoena for documents held by one of its former attorneys.

Mr Toyoda accepted a formal request, issued by the Democratic chairman of the House oversight committee, Edolphus Towns, to appear at a hearing next Wednesday, the FT reports.
 
Last Updated ( Friday, 19 February 2010 11:00 )