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JP Morgan’s oil price forecast

Oil price illustrative picture

Over the last 18 months, the remain the major driving The emergence of Omicron
world has been plagued by an force behind oil prices. Covid-19 is not expected to
unprecedented health crisis. With increased supply from slow down holiday travels.
The Covid-19 pandemic has US oil producers and an Analysts at JP Morgan forecast
caused the global economy to increase of investments in the that recent gas price increases
stall. As a result, countries oil industry after a lapse since are overreactions by investors
around the world are facing the beginning of the worried about falling demand
severe economic challenges pandemic, JP Morgan’s oil for oil as a direct result of a
and consumer demand price forecast can be reversed. potential country lockdown.
outpaces supply largely. The firm said the market may
Several industries have been overestimate the impact of the
negatively affected by this Omicron variant of Covid-19
unforeseen situation: airlines, on the oil price. In their
leisure facilities, casinos and opinion, despite the recent
gaming, auto parts and release of $50 million barrels
equipment, and oil and gas from the Strategic Petroleum
drilling. In this ongoing Reserve by the Biden
pandemic, the oil supply has administration, oil prices will
not kept up with demand, so remain high.US efforts to
consumers throughout the lower oil prices will have little
world are feeling the effects of impact on the current oil
elevated gas prices. There is crisis. JP Morgan believes that
no doubt that supply plays a “with OPEC+ being firmly in
major role in driving oil the driver's seat for oil prices,
prices. Currently, the oil
supply imbalance needs to be Brent will hit $120/bl in 2022
resolved. For years to come, JP and could even overshoot to
Morgan predicts steady oil $150/bl in 2023”. JPMorgan Chase World Headquarters
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demand, while the supply will

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