Oil prices fell by 30 percent on Friday. It looked much better in 2018 for black gold. The recent drop in prices is also a warning from JPMorgan experts.
The price of Brent Crude has fallen by about a third in the last month. This means that since March all the mark-ups have been leveled off and the oil price has fallen by eight percent during the year.
JPMorgan reduces oil price forecast
Given the current market situation, US bank JPMorgan experts have been hoping for price developments oil dropped significantly. According to CNBC reports, Scott Darling, responsible for the Asia-Pacific oil and gas business, expects the Brent Crude price to reach around $ 73 in 2019. So far, the commodity trader was still at $ 83.50 per barrel. However, this forecast was made before the price last Friday.
The most pessimistic expectation of the daring is, in particular, the relationship between the supply and demand. He now believes that the supply coverage he predicts will continue next year. Accordingly, Darling does not see the air in 2020 – for about two years the price, in his opinion, is about $ 64 per barrel. Thus, the Brent price would tend to go up to the current level.
OPEC plans substantiate the arguments
The Organization of Petroleum Exporting Countries (OPEC) has recently announced an increase in production at the beginning of 2019. Darling continues to confirm his forecast that oil demand will continue to weaken. "OPEC should cut oil production by 1.2 million barrels next year to offset the oil market," the expert says.
For example, US President Trump has always spoken of the fall in oil prices, exerting pressure on exporting countries. Last week, White House CEO thanked Saudi Arabia's oil and gas producer for oil production expansion: "Oil is huge! It's like a big tax cut for America and the world. […] Thank you for Saudi Arabia, but go deeper! "The head of government said in Twitter.
And most briefly it had its share of the decline in oil prices: the sanctions imposed by the United States against the OPEC country, Iran, were less severe than many experts had expected.
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