Oil Up 21.3% in a Month: What It Means for Cost of Capital

21.3% – that’s how much energy commodities jumped in a single month.

March 2026. The biggest spike since oil hit $125 a barrel in 2022.

At the start of the year, multiple cuts were widely expected. Then geopolitical risk re-emerged. Oil surged. And the Fed’s soft-landing narrative started to shift.

Inflation data from Haver Analytics and the Bureau of Labor tells a different story: core CPI moved only 0.2%. The oil shock hit fast, passed through quickly, and might fade in the next 2–3 months.

Retail energy prices adjusted almost immediately. This suggests that we are currently traversing a one-time lift to the price level, and we aren’t yet entering a period of structural inflation. Everything will depend on whether oil stays at $96 or falls back toward $65.

For sponsors and operators, this isn’t just macro noise – it directly impacts cost of capital, lender appetite, and deal structuring.

At Bankers Edge Advisory, we manage the complexity of capital markets and capital raising so management teams can stay focused on driving bottom-line performance.

If you’re evaluating a refinance or planning for growth, give us a call and learn how we can help you achieve a better financing outcome than going it alone.

Source: “Oil Price Spike: Temporary Boost To Inflation, But For How Long?” – Haver Analytics

Richard Consul, CFA | Mitch Vermet, CFA, CAIA

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Meet Mitch Vermet,

CFA, CAIA
Managing Director
Our other Managing Director, Mitch Vermet, CFA, CAIA, has a decade of experience in institutional asset management and investment banking. He has served as an integral asset within close-knit investment teams responsible for building portfolios and allocating tactical assets for over $30 billion in institutional capital.
Since earning a BA in Economics from the University of Michigan and an MA in Management from the Ross School of Business at the University of Michigan, Mr. Vermet has demonstrated mastery in helping clients manage and structure their balance sheets with strategic asset liability management solutions. He has built a reputation for helping clients strategically manage risk while capitalizing on opportunities across unique macroeconomic scenarios, lending valuable expertise and foresight to clients.  

Mr. Vermet is a member of the CFA Institute and CAIA Association. He is also a Registered Representative of BA Securities, LLC, and a member of FINRA and SIPC.

Meet Richard Consul,

CFA
Managing Director
Richard Consul, CFA, brings unmatched expertise and experience as one of our Managing Directors. Mr. Consul has over 20 years of domestic and international secondary market expertise as a Senior Portfolio Manager and Fixed Income, Currency, and Commodities Strategist.
Since earning a BBA in Finance and an MSE in Financial Engineering from the University of Michigan, Mr. Consul has served as a dedicated business partner to many corporate, banking, and insurance clients. He has built a reputation for helping clients solve and overcome various complex liquidity, risk management, ALM, and secondary market challenges. 
Mr. Consul has lent his expertise to countless financial publications and platforms, including Asset TV, a renowned video research platform for investment professionals. He is a member of the CFA Institute and has received certifications in Securities Industry Essentials (SIE), Series 82, and Series 63 through FINRA.