Today’s Global Crude Markets are Tight, Says JP Morgan

SEATTLE (Oil Monster): The global crude oil market is competitive right now, according to JP Morgan analysts. The most recent research report stated that the market is currently focused on bearish drivers.

As to JP Morgan, there is a decrease in the worldwide crude stockpiles in contrast to the preceding year. At 4.42 billion barrels, the current inventory level is the lowest since January 2017. Additionally, the present OECD liquids and crude stockpiles are lower than their five-year norms.

The investment banking firm believes that today’s fair value of Brent crude is around $82 per barrel, which is almost $10 above the spot price. The main cause of the price decline is the anticipated glut in the market for the upcoming year. The decrease in prices has also been influenced by growing worries about the increase in output by OPEC+ nations.

According to JP Morgan, the OPEC+ countries are dedicated to their longer-term goal of progressively reviving idle supplies, which amounts to 2.2 million barrels per day over a 12-month period. The one-year completion date of December 2025 will only be delayed by two months due to the recent decision not to boost output in October and November. It further stated that this choice will just postpone the problem rather than fix it.

YOU MAY ALSO BE INTERESTED IN:

Oil Prices Settle Up on Increased Chance of EU Embargo of Russian Oil

Goldmand Sachs, Morgan Stanley Lowered 2025 Crude Oil Price Outlook