Oil prices seen to rise to $150/barrel in short term: JP Morgan

JP Morgan expects oil prices to rise to $150 a barrel in the short term, and corn prices to hit $13 a bushel, an all-time high.

The Federal Reserve said in its mid-year outlook that commodities could generate robust returns, amid tight supplies and low inventories.

According to the report, there is no lack of stockpile that makes the market vulnerable to unplanned supply disruptions, such as the escalation of protests in Libya, deteriorating conditions of US crops, and active hurricane season in the Atlantic Ocean that may lead to the closure of refineries in the Gulf of Mexico.

There is little clarity about the time of resuming grain shipments from Ukraine, the world's fifth largest exporter.

Unlike previous periods of food price inflation, high prices alone will not be sufficient to solve the stockpile issue in such circumstances, which may continue.