JPMorgan, one of the leading global financial services companies, has adjusted its outlook for the oil market, projecting that oil prices will average $83 per barrel in 2024.
This forecast comes amid expectations of a shift in the dynamics of the oil market, with a predicted decline to $75 per barrel in 2025.
The bank has also revised its forecasts for oil demand growth, indicating a significant slowdown. While initial expectations were for a growth of 1.9 million barrels per day in 2024, JPMorgan now estimates an increase of only one million barrels per day for the following year.
This moderation in demand aligns with an anticipated shift toward a supply-driven market. JPMorgan points to the increased production from various countries as the driver of this change. The United States, Canada, Guyana, and Brazil are expected to increase their oil production, contributing to the overall rise in global supply.