Analysts at JPMorgan Chase (NYSE:JPM) are forecasting that crude oil prices will trade at an average price of $83 U.S. per barrel in 2024.
The analysts at JPMorgan, the world’s biggest bank with $4 trillion U.S. of assets under management, expect oil to run higher this year before falling back to $75 U.S. a barrel in 2025.
The bank has also revised its oil demand forecast, saying it now anticipates growth in oil demand in 2024 of one million barrels per day, down from a previous estimate of 1.9 million barrels a day.
The JPMorgan analysts say their forecasts reflect a shift towards a supply-led energy market over the next two years.
Specifically, the bank notes increased production from several countries, including the U.S., Canada and Brazil that will lead to a rise in global supply.
Oil markets have been volatile to start the year. After initially declining at the beginning of January, crude oil prices have firmed up as conflict escalates across the Middle East.
West Texas Intermediate (WTI) crude oil, the U.S. standard, is currently trading at $74.62 U.S. a barrel.
Brent crude oil, the international benchmark, is now trading at $79.72 U.S. per barrel.
