The US bank also expected, in a recent research note, that oil prices would rise to reach $125 a barrel this year, and $150 a barrel in 2023, indicating that there is a growing recognition in the market of weak global investment in supply.
Assuming production at current quotas, JP Morgan said, The surplus production capacity of OPEC will fall to 4% of the total production capacity by the fourth quarter of 2022, from 13% in the third quarter in 2021.
He added that the weak investment within the countries of the “OPEC +” group, and the increased demand for oil after the Corona pandemic, may lead to a potential energy crisis.
Oil prices hit their highest levels in two months on Wednesday, supported by a supply shortage, with crude inventories in the United States, the world’s largest consumer, falling to their lowest levels since 2018.
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