• 4 minutes Nord Stream 2 Halt Possible Over Navalny Poisoning
  • 8 minutes America Could Go Fully Electric Right Now
  • 11 minutes JP Morgan says investors should prepare for rising odds of Trump win
  • 8 mins US after 4 more years of Trump?
  • 2 days Daniel Yergin Book is a Reality Check on Energy
  • 3 days Permian in for Prosperous and Bright Future
  • 2 days Famine, Economic Collapse of China on the Horizon?
  • 6 mins Something wicked this way comes
  • 2 days Oil giants partner with environmental group to track Permian Basin's methane emissions
  • 45 mins Why NG falling n crude up?
  • 3 days YPF to redeploy rigs in Vaca Muerta on export potential
  • 3 days Gepthermal fracking: how to confuse a greenie
  • 3 days Top HHS official takes leave of absence after Facebook rant about CDC conspiracies
  • 14 hours The Perfect Solution To Remove Conflict Problems In The South China East Asia Sea
  • 2 days Open letter from Politico about US-russian relations
  • 4 days Surviving without coal is a challenge!!

Breaking News:

Norway’s Oil Fund Is Buying Bitcoin

Oil Bulls Return As OPEC+ Reassures Markets

Oil Bulls Return As OPEC+ Reassures Markets

After oil prices crashed at…

A Major Power Play In Libya

A Major Power Play In Libya

The conflict in Libya is…

Irina Slav

Irina Slav

Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.

More Info

Premium Content

JP Morgan Cuts Its Oil Price Outlook For 2019

JP Morgan has revising its outlook on Brent crude to US$73 per barrel on average, CNBC reports. The bank’s earlier forecast was for an average Brent crude price of US$83.50 a barrel.

The head of the bank’s Asia-Pacific oil and gas operations, Scott Darling, told CONB analysts had factored in the increase in supply in North America that will occur in the second half of 2019 and will eventually pressure prices even lower in 2020, to an average US$64 in that year.

With everything that has been happening to oil in the last few days, with prices getting pummeled by mass short covering and pessimistic economic forecasts for global growth, chances are investment bank will soon begin revising their forecasts unless they are certain OPEC will agree a production cut at its Vienna meeting next month.

This cut is by no means certain although bulls are pinning their hopes on it in the absence of any other significant positive factor working for oil right now. On the contrary, even the latest production numbers from OPEC’s number-one, Saudi Arabia, were bearish for prices: Bloomberg’s Javier Blas yesterday reported, citing industry insiders, that the Kingdom’s oil production since the beginning of this month jumped to new highs, reaching 10.8-10.9 million bpd. Supply, including production and inventory drawdowns reached 11 million bpd on some days.

JP Morgan’s Darling said if OPEC is to balance the market and prop up prices, it would need to reduce its combined production by as much as 1.2 million bpd. The cartel itself is discussing cuts of between 1 million bpd and 1.4 million bpd. Russia has yet to weigh in but a Reuters report citing two senior Russian government officials said the country would rather not join an OPEC-led cut this time, even as President Putin said at an industry event that Russia will cooperate with OPEC on oil prices.

By Irina Slav for Oilprice.com

More Top Reads From Oilprice.com:


Download The Free Oilprice App Today

Back to homepage





Leave a comment

Leave a comment




Oilprice - The No. 1 Source for Oil & Energy News