Justin had the news on this here:
As noted, JPM's call follows something similar from Goldman Sachs earlier in the week:
A little more from JPM's note:
- sees global supply growth offsetting a record rise in demand
- says inventory build-up lowers the risk of price spikes
- revised its average Brent price forecast for 2023 to $81 per barrel from $90 earlier
- for West Texas Intermediate (WTI) to $76 a barrel from $84 previously
- lowered its 2024 price forecasts for Brent to $83 per barrel from $98, and for WTI to $79 a barrel from $94
- sees global oil supply growing by 2.2 million barrels per day (bpd) in 2023, surpassing projected demand growth of 1.6 million bpd.
- "It is becoming increasingly clear that high oil prices over the past two years did exactly what they are supposed to do — incentivize supply"
- U.S. producers are leading the supply surge
- non-OPEC supply keeping up with global demand since 2022
- leaving OPEC+ to cut output
- "Even with OPEC's existing 1.16 mbd (million bpd) voluntary cuts extended into 2024, we still project a 0.4 mbd surplus next year,"
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Weekly price candles:
