Bank of America (BofA) anticipates a significant rally in commodities in 2026, with energy poised as a key contrarian trade. Chief Investment Strategist Michael Hartnett highlights a shift towards inflationary pressures and underinvestment in traditional energy as catalysts for this trend. BofA projects a 60% increase in crude oil prices, potentially driving WTI to $96 per barrel, influencing foreign exchange, interest rates, and equity markets.
The forecast suggests currencies such as the Canadian dollar, Norwegian krone, and Australian dollar could benefit, while the Japanese yen and parts of the euro bloc might encounter challenges. However, potential risks include global economic slowdowns, disinflation, and increased oil supply from OPEC+.
Bank of America Forecasts 2026 Commodity Surge Led by Energy
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