Wall Street Breakfast How high can oil go?
Mar 8, 2026
Discussion of a sharp oil rally driven by Middle East disruptions and production cuts. Probabilities for oil hitting $100, $150, or $200 per barrel are explored. Conversation about how sustained oil gains could nudge headline CPI higher. Preview of February core CPI expectations and what energy may mean for inflation. Oracle earnings are framed as a test of hyperscaler AI spending.
AI Snips
Chapters
Transcript
Episode notes
Middle East Disruptions Pushed Oil To Near $95
- Oil prices spiked sharply after Middle East disruptions, with WTI posting its biggest weekly rise since 1983.
- Kim Kahn cites Kuwait cutbacks and near-total Strait of Hormuz shutdown risks that drove WTI and Brent toward $95 and higher.
Oil Moves Have Direct Measurable CPI Impact
- Elevated oil risks feed directly into inflation forecasts, with Goldman Sachs saying a sustained 10% oil rise boosts headline CPI ~28 basis points.
- That implies a $10 rise sustained three months could lift U.S. headline CPI from 2.4% to about 3% by May.
Monitor February CPI For Oil Driven Volatility
- Watch Wednesday's February CPI release for immediate market reaction; forecasts point to a 0.3% monthly headline rise and 0.2% core gain.
- Wells Fargo warns energy will reassert upward pressure even as food inflation cools, affecting core services and goods dynamics.