The American bank JPMorgan saw on Saturday that the currently high oil prices have the potential to increase further in the coming period, and that Brent crude may rise to $150 per barrel.
According to Christian Malik, an analyst at the American bank, production capacity shocks in the near to medium term, and a shift away from investments in the hydrocarbon sector, may eventually lead the price of Brent crude to $150 per barrel.
Recent high oil prices due to OPEC production cuts and rising demand have stoked inflationary fears and raised concerns that interest rates will remain high for a longer period.
One of the primary reasons for JPMorgan’s optimistic perspective on pricing is that it expects a higher interest rate environment for a longer period would lead to a reduction in capital investments dedicated to energy exploration and production.
Therefore, Malik believed that the average price of Brent crude oil would range between $90 and $110 per barrel in 2024, and between $100 and $120 per barrel in 2025, before reaching $150 by 2026.
According to these projections, the global supply-demand gap will stabilize at 1.1 million barrels per day in 2025 and rise to 7.1 million barrels per day in 2030.
Despite the risk that crude oil prices would rise to around $100 per barrel, analysts predicted that Brent crude oil would reach $80 per barrel in the long run.