Oil – JP Morgan forecasts a lower average price per barrel for 2023

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JP Morgan discusses its oil outlook for 2023.

“Entering 2022, our view was that the global oil market will remain tight, with Brent averaging $90/bbl for the year. Russia’s war prompted us to raise our 2022 average Brent price forecast to $104 and 2023 to $98 and a peak of $114 in 2Q22 (March 2022),” JPM notes.

We now forecast a $8 lower 2023 average price, on the grounds that Russian production will fully normalize to pre-war levels by mid-2023. Despite more pessimistic balances over the next few months, we expect Brent to average $90/bbl in 2023 and $98/bbl in 2024,” JPM adds.