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NEW YORK – JPMorgan, a leading global financial services firm, has adjusted its outlook for the oil market, projecting that oil prices will average $83 per barrel in 2024. This forecast comes amid expectations of a changing dynamic in the oil market, with a predicted decline to $75 per barrel in 2025.
The bank has also revised its oil demand growth projections, indicating a significant slowdown. While initially, the growth in oil demand was expected to see an addition of 1.9 million barrels per day in 2024, JPMorgan now estimates that the increase will be just one million barrels daily by the following year.
This tempered demand outlook coincides with an anticipated shift towards a supply-led market. JPMorgan points to increased production from several countries as the driving force behind this change. Notably, the U.S., Canada, Guyana, and Brazil are all expected to ramp up their oil output, contributing to the overall increase in global supply.
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