JP Morgan cuts 2023, 2024 Oil price forecasts for Brent, WTI to $81, $76 respectively

While justifying challenges to the black gold, JP Morgan cuts Oil price forecasts for 2023 and 2024 in its latest release.

“JPMorgan cut its oil price forecasts for this year and 2024 as it sees global supply growth offsetting a record rise in demand, while inventory build-up lowers the risk of price spikes,” per Reuters.

The update adds that the Wall Street bank revised its average Brent price forecast for 2023 to $81 per barrel from $90 earlier, and for West Texas Intermediate (WTI) to $76 a barrel from $84 previously.

That said, the 2024 prices were revised down to $83 for Brent and $79 for WTI versus previously expected $98 and $94 in that order.

Additional quotes from Reuters

JPMorgan sees global oil supply growing by 2.2 million barrels per day (bpd) in 2023, surpassing projected demand growth of 1.6 million bpd.

The world could consume a record-setting 101.4 million bpd of oil this year, led by unprecedented demand in China, India, and the Middle East.

U.S. producers are leading the supply surge, with non-OPEC supply keeping up with global demand since 2022 and leaving OPEC+ - which comprises OPEC and other major producers such as Russia - to cut output, it added.

Also read: WTI Price Analysis: Bears make their moves during the Fed, break support structure