The $150 price warning addressed several catalysts, including capacity shocks, the energy supercycle – and of course efforts to move the world away from fossil fuels.
Recently, crude oil prices rose on the back of voluntary OPEC+ production cuts, led by Saudi Arabia which almost single-handedly took 1 million barrels per day off the market, followed by a fuel export ban from Russia.
Increased demand for crude oil coincided with supply constraints, leading to higher crude oil prices and contributing to higher consumer prices (inflation).
Brent crude prices are trading above $93 levels, but Malik expects Brent prices to range between $90 and $110 next year, and reach much higher levels in 2025.
“Put on your seat belts,” Malik said, warning of OPEC production cuts and a lack of new investments in oil production, explaining: It will be a very volatile super cycle.
“Put on your seat belts,” Malek told Bloomberg last weekend, warning of OPEC’s production cuts and the lack of new investments in oil production, explaining: “It will be a very, very volatile cycle.”
Last February, JP Morgan said that oil prices are unlikely to reach $100 a barrel this year unless there are some major geopolitical events that shook the markets, and the US bank also warned that OPEC+ could add up to 400. thousand barrels per day to global supplies, with the possibility of a recovery in Russian oil exports by the middle of this year. At the time, JP Morgan estimated demand growth from China at about 770,000 barrels per day, which was lower than what the International Energy Agency and OPEC had estimated.
JP Morgan now expects the global supply-demand imbalance to reach 1.1 million bpd in 2025, but will grow to a deficit of 7.1 million bpd in 2030 as strong demand continues in the face of limited supply.
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