After the decision of Saudi Arabia and Russia to extend the reduction in oil production, and the recent rise in oil prices, the American bank, JP Morgan, expects Brent crude oil to rise to reach $150 per barrel by 2026.
JPMorgan Bank: Oil will continue to rise and Brent crude will reach $150 by 2026
The American bank, JP Morgan, said that the currently high oil prices have the potential to increase further in the coming period, noting that “Brent crude may rise to $150 per barrel.”
According to Christian Malik, an analyst at the American bank, “production capacity shocks in the near to medium term, and a shift away from investments in the hydrocarbon sector may eventually lead the price of Brent crude to $150 per barrel.”
The recent high oil prices due to OPEC production cuts and high demand have stoked inflationary fears and raised fears that interest rates will remain high for a longer period.
A higher interest rate environment for a longer period is one of the main factors behind JPMorgan’s bullish outlook on prices, as the bank believes that this environment will lead to “restraining capital investments allocated to energy exploration and production.”
Malek also pointed to another factor, which is the political and institutional pressures that are accelerating the transition away from hydrocarbons. He believes that the average price of Brent crude will range between $90 and $110 per barrel in 2024, and between $100 and $120 per barrel in 2025, before recording $150 by 2026. .
According to these estimates, the disparity between global supply and demand will stabilize at 1.1 million barrels per day in 2025, and increase to 7.1 million barrels per day in 2030.
Estimates also indicated that Brent crude oil would reach levels of $80 per barrel in the long term, despite the risk that the crude price would reach about $100 per barrel.
Oil prices rose last Monday, supported by expectations of a widening supply deficit in the last quarter of the year.
On September 5, Russia and Saudi Arabia announced that they would voluntarily extend the reduction in oil production until the end of the year.
A few days ago, the website said,UNHERDThe Briton said that oil prices will continue to rise to reach $100 per barrel this month, for the first time in 2023, considering that high oil prices threaten the presidency of US President Joe Biden.
Read also: Oil rises amid expectations of an extension of OPEC+ production cuts
2023-09-23 14:42:22
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