Dimon mentioned in June that he was making ready the financial institution for an financial “hurricane” brought on by the Federal Reserve and Russia’s warfare in Ukraine.
Al Drago | Bloomberg | Getty Pictures
One key lesson of the previous yr is that the world shouldn’t be prepared to maneuver away from oil and gasoline because the dominant supply of gasoline, in line with JPMorgan Chase CEO Jamie Dimon.
The financial institution chief mentioned on CNBC’s “Squawk Field” on Tuesday that the continued warfare in Europe highlighted that fossil fuels are nonetheless a key element of the worldwide economic system and would stay so for the foreseeable future.
“If the lesson was realized from Ukraine, we’d like low cost, dependable, protected, safe vitality, of which 80% comes from oil and gasoline. And that quantity’s going to be very excessive for 10 or 20 years,” Dimon mentioned.
Russia’s invasion of Ukraine earlier this yr despatched commodity costs hovering, together with oil and pure gasoline. U.S. oil benchmark West Texas Intermediate crude traded above $100 per barrel for a lot of the spring and summer time, although it has since eased again towards pre-war ranges.
The rising value of pure gasoline has been a selected ache level in Europe, which beforehand relied on closely on Russian gasoline for house heating.
Dimon mentioned that world leaders whereas pursuing renewable options must give attention to an “all the above” vitality technique to take care of gasoline for economies and cut back carbon emissions, not neglecting oil and gasoline manufacturing within the close to time period.
“Increased oil and gasoline costs are resulting in extra CO2. Having it cheaper has the advantage of lowering CO2, as a result of all that is occurring all over the world is that poorer nations and richer nations are turning again on their coal vegetation,” Dimon mentioned.
The JPMorgan chief had beforehand declined a pledge to cease doing enterprise with fossil fuels, saying in a Congressional listening to that the transfer can be a “street to hell for America.”