Analysts at “JPMorgan” rule out that oil prices will breach $100 a barrel levels this year, unless there are major geopolitical changes.
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JPMorgan Bank
Analysts at the major US bank “JPMorgan” announced that they excluded oil prices from breaching $100 per barrel levels this year, unless there are major geopolitical drivers.
This came amid possibilities that “OPEC +” will increase supplies, and that Russian flows will recover by the middle of this year.
“It is unlikely that the OPEC + alliance will defend a minimum price of $80, and therefore it will not need to cut production quotas this year,” Archyde.com quoted a note by the US bank.
The US bank said: “The group may instead add an additional 400 thousand barrels per day to supply.”
The note also added that it expects China to import a record amount of crude in 2023, due to the increasing demand for fuel with the increase in travel rates in the wake of the abolition of “Corona” restrictions.
Earlier, the Saudi Energy Minister, Prince Abdulaziz bin Salman, confirmed that the “OPEC +” alliance is committed to the agreement that was completed in late 2022 for the rest of the current year.
Abdulaziz bin Salman’s statements come at a time when OPEC and its partners “OPEC +” decided to set fixed production targets for the full year ahead, as key officials indicated that they intend to leave the quotas unchanged throughout 2023.
He added, “The agreement that we concluded in October will remain in force for the rest of the year… the first point of the line,” adding, “We must make sure that the positive signs witnessed by the market are sustainable.”
It is noteworthy that the Organization of “OPEC” expected that the demand for oil this year would exceed the levels before the “Corona” pandemic, to reach 102 barrels per day. The Secretary-General of the Organization, Haitham Al-Ghais, also expected that the demand would reach 10 million barrels per day by 2025.