• 3 minutes e-car sales collapse
  • 6 minutes America Is Exceptional in Its Political Divide
  • 11 minutes Perovskites, a ‘dirt cheap’ alternative to silicon, just got a lot more efficient
  • 2 days GREEN NEW DEAL = BLIZZARD OF LIES
  • 6 days They pay YOU to TAKE Natural Gas
  • 2 days How Far Have We Really Gotten With Alternative Energy
  • 2 days What fool thought this was a good idea...
  • 3 hours A question...
  • 5 days Why does this keep coming up? (The Renewable Energy Land Rush Could Threaten Food Security)
  • 11 days The United States produced more crude oil than any nation, at any time.

JP Morgan Raises 2020 Oil Price Outlook

JP Morgan raised on Tuesday its oil price forecasts for next year, as the investment bank expects OPEC’s production cuts to be effective in conjunction with expectations for better economic growth in emerging markets, Reuters reported.

It is estimating that rather than oversupply, the oil market will be in a deficit next year, by 200,000 bpd. This is in stark contrast to its estimates from September, that assumed a 600,000 bpd oversupply situation for 2020. It is expected a 1 million bpd global demand growth—the same as its September forecast.

JP’s new forecast for the Brent crude oil benchmark is $64.50 per barrel for next year, up from earlier projections of $59 per barrel. For 2021, the bank is expected prices to fall to $61.50.

For the US WTI benchmark, JP Morgan is expecting $60 per barrel next year.

Brent was trading up 1.24% on Tuesday, at $66.15 per barrel as the US China trade deal progress reinvigorated the oil market. It is the highest price point since the September attacks on Saudi Aramco infrastructure that took over 5 million bpd off the oil markets.

WTI was also trading up, by 1.25%, at $60.96.

Goldman Sachs also recently revised upward its oil price forecast for next year, also citing OPEC’s deeper production cuts that will help to balance supply and demand. Goldman is expecting Brent crude oil to average $63 next year, with WTI averaging $58.50 per barrel, according to its revisions made last week.

Two weeks ago, JP Morgan called it for OPEC, saying it expected bigger OPEC production cuts.

ADVERTISEMENT

The threat of rising US production, however, is a real one, with production increasing to 12.9 million bpd over the last few weeks, up from 11.7 million bpd at the beginning of the year.

By Julianne Geiger for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage



Leave a comment

Leave a comment

EXXON Mobil -0.35
Open57.81 Trading Vol.6.96M Previous Vol.241.7B
BUY 57.15
Sell 57.00
Oilprice - The No. 1 Source for Oil & Energy News