Oil returns above $100: Daniel Varela’s analysis on RTS

Oil prices continue to climb.​‌

Against a backdrop of renewed tensions in the Middle East and attacks targeting oil tankers in the region, crude oil has crossed the symbolic $100-per-barrel threshold for the first time since late July.

Daniel Varela, Chief Investment Officer at Piguet Galland, appeared on RTS's 19h30 to discuss the economic implications of rising oil prices and the risks that continue to weigh on global energy markets.

According to Daniel Varela, the $100 mark represents far more than a simple market milestone: it serves as a wake-up call for investors.

“Energy market specialists are starting to revise their forecasts upward, with a target of $150 per barrel should the Strait of Hormuz remain closed.”

He also noted:

“$150 per barrel is effectively the level at which we would begin to see demand destruction and a tangible impact on economic activity.”

As winter approaches, higher energy prices could also have knock-on effects on natural gas markets and household heating costs.

“We are entering a period when North America and Europe will need to heat their homes, resulting in significant demand for natural gas and increased pressure on gas prices.”

Watch Daniel Varela’s full intervention on RTS 19h30 (French only)