3 Stocks to Buy as Saxo Bank Predicts Inflation Will Surge More Than 15% in 2022
StockNews
Published Dec 09, 2021 12:59PM ET
Updated Dec 09, 2021 01:30PM ET
3 Stocks to Buy as Saxo Bank Predicts Inflation Will Surge More Than 15% in 2022
Investment banking company Saxo Bank has predicted inflation will exceed 15% in 2022. Oil prices are rallying again as omicron variant fears subside on optimistic reports from vaccine companies. And because analysts expect oil prices to hit $125 per barrel in 2022, the stocks of ConocoPhillips (NYSE:COP), EOG Resources (NYSE:EOG), and Suncor (SU) might be solid bets now given their fundamental strength. Let’s discuss all this.The United States annual inflation rate, which is measured by the consumer price index (CPI), for October came at 6.2%, its highest gain in more than three decades. Danish investment banking company Saxo Bank has predicted that a persistent energy crisis and labor shortage will drive U.S. inflation above 15% before the start of 2023.
Furthermore, financial services firm Wells Fargo & Company (NYSE:WFC), after studying 15 major asset classes, deduced that inflation is bullish for oil, with the potential for a 41% jump in its price. Oil prices increased on December 8 as fears of the omicron variant receded, with Brent Crude futures settling at $75.82 per barrel and West Texas Intermediate crude at $72.36 a barrel.
In addition, investment bank JPMorgan Chase & Co. (NYSE:JPM) strategists expect oil prices to reach $125 per barrel in 2022 due to OPEC’s limited production increase. Therefore, we think the stocks of ConocoPhillips (COP), EOG Resources, Inc. (EOG), and Suncor Energy Inc. (NYSE:SU) might be ideal bets to cash in on industry tailwinds.
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