JP Morgan said on Wednesday it expects excess capacity in the Organization of the Petroleum Exporting Countries (OPEC) to decline over the course of 2022, raising the risks of a sharp increase in crude prices.
The US investment bank expects oil prices to rise to reach $125 a barrel this year and $150 a barrel in 2023. “We see a growing recognition in the market of weak global investment in supply,” he said.
Oil prices hit two-month highs on Wednesday, supported by a supply shortage, as crude inventories in the United States, the world’s largest consumer, fell to their lowest levels since 2018.
The bank said in a note that assuming production at the current quotas, the surplus production capacity of OPEC will fall to four percent of the total production capacity by the fourth quarter in 2022, from 13 percent in the third quarter in 2021.
He added that the weak investment within the OPEC + countries and the increasing demand for oil after the pandemic may lead to a potential energy crisis.
These were the details of the news JPMorgan: Oil prices are expected to reach $125 this year and... for this day. We hope that we have succeeded by giving you the full details and information. To follow all our news, you can subscribe to the alerts system or to one of our different systems to provide you with all that is new.
It is also worth noting that the original news has been published and is available at saudi24news and the editorial team at AlKhaleej Today has confirmed it and it has been modified, and it may have been completely transferred or quoted from it and you can read and follow this news from its main source.
