JPMorgan cuts oil price forecasts on weaker demand

JPMorgan lowered its global oil price forecasts for 2025 and 2026, citing the impact of increased production from the OPEC+ alliance and the potential for weaker demand.

In a report released on Monday, the US lender reduced its 2023 forecast for Brent crude to $66 per barrel, down from $73 previously.

The largest US bank also cut its forecast for US West Texas Intermediate (WTI) crude to $62 per barrel, down from $69 in earlier estimates, according to Reuters.

For 2026, JPMorgan revised its forecast for Brent crude to $58 per barrel from $61, and for WTI crude to $53 per barrel from $57.

The bank now expects global oil demand to grow by 800,000 barrels per day (bpd) this year, with average growth in the third quarter expected to slow to just 300,000 bpd.

JPMorgan noted that higher production levels from OPEC+ would shift price dynamics, combining with weaker demand to create larger surpluses and push Brent prices down to $60 per barrel by the end of the year.

At Monday's close, Brent crude settled at $64.88 per barrel, while WTI crude was priced at $61.53.