JP Morgan: Crude Oil Prices to Fall to $60 Levels by 2025

SEATTLE (Oil Monster): The most recent JP Morgan crude oil market study predicts price volatility for the commodity in the years to come. Before falling to $60 per barrel by the end of 2025, prices are predicted to peak at $80 per barrel in the last quarter of this year.

West Asian geopolitical concerns are blamed for the anticipated price volatility. However, it pointed out that the violence is probably going to be contained by the powerful economic incentives offered by important regional actors like Saudi Arabia and the United Arab Emirates.

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It should be mentioned that from late September to early October of this year, the price of crude oil increased steadily, going from roughly $71 per barrel to over $81 per barrel. But due to an oversupplied market and worries about demand, prices fell back to about $73 per barrel. Weaker demand from big economies like the U.S. and China further intensified the downward pressure on pricing.

Global oil stockpiles are at their lowest point since 2017, according to JP Morgan. Nonetheless, increased supplies from nations like Guyana and Brazil will contribute to a rise in inventory levels.

Meanwhile, the Energy Information Administration (EIA) has further lowered its 2025 global oil demand forecast. OPEC has also cut its forecasts for demand growth.