Expect $4 Gas Sooner Rather Than Later, Morse Says

Gasoline in the US is likely to top $4.00/gal soon and oil prices could climb another ~50%, according to Edward Morse, special advisor at Hartree Partners. He also expects continued attacks on ships in the Strait of Hormuz, which would tighten supply and sustain upward pressure on crude. This is a negative, risk-off signal that should raise near-term inflation and pressure energy-exposed sectors and transport/logistics names.

Analysis

Gasoline in the US is likely to top $4.00/gal soon and oil prices could climb another ~50%, according to Edward Morse, special advisor at Hartree Partners. He also expects continued attacks on ships in the Strait of Hormuz, which would tighten supply and sustain upward pressure on crude. This is a negative, risk-off signal that should raise near-term inflation and pressure energy-exposed sectors and transport/logistics names.