Gary Schlossberg, Global Strategist, Wells Fargo Investment Institute, on Thursday, said that there is still some potential upside to crude oil at the moment.

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In an interview to CNBC-TV18, Schlossberg said, “Oil is at our price target for the year, but given the fundamental tightness in the market we could see some additional upside potential.”

As far as emerging markets are concerned, he expects India to do well over the course of the year. “We still expect to see the economy do well on a relative basis over the course of the year but there are uncertainties there which are nothing else but aggravated by the Russia-Ukraine crisis and the threat that it directly imposes on the commodity markets,” said Schlossberg.

As far as the global markets are concerned, Schlossberg believes it is not the job of the Federal Reserve to support the US stock market. He added that the US Fed will have to consider all systemic risks. Additionally, he said that he is seeing above-average growth in Europe.

He said, “Based on what we have seen so far, the Federal Reserve will continue to pursue interest rate hikes; the question is how rapidly, aggressively they move on that. Our feeling is a bit on the conservative side, probably about 5 rate hikes for the year, but it will take upending in the financial markets for the Fed to move to the sideline.”

Also Read: Why US shale oil companies are in no mood to hike output despite rising crude prices

On the geopolitical side, he said that the uncertainty around the economic angle due to the Ukraine crisis remains. He also specified that Russia along with Ukraine is a major wheat exporter.

For the entire interview, watch the accompanying video

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First Published:Feb 24, 2022 10:12 AM IST