Saturday , December 5 2020

JP Morgan cuts oil price for 2019

Signature JP Morgan Brent crude oil prices are expected to be $ 73 per barrel in 2019, and the investment bank will be lower than its estimate of $ 83.50 per barrel.

Scott Darling, head of the Asia-Pacific oil and gas division in JP Morgan, said the increase in supply will be above the price, especially since the Organization of Petroleum Exporting Countries (OPEC) has decided to increase production early. this year's

According to a report by the financial news service CNBC News, the slowdown in demand growth will stand on prices in 2019 and 2020, JP Morgan, one of the world's oldest financial services companies.

The company expects Brent, the international criterion of oil, to approach $ 64 in 2020.

Darling said he had partially revised the viewpoint, because the supply of crude oil in North America would increase in the second half of the year.

The market now focused on the next oil group meeting on December 6 in its headquarters in Vienna, as well as in Russia and other producing nations.

Darling pointed out that OPEC should reduce oil production by 1.2 million barrels a day during the next year in order to balance the energy market.

Oil prices saw serious declines and decreases this year. In October, prices jumped to multi-year levels due to US President Donald Trump's decision to impose sanctions on Iran.

The sanctions on the third largest producer of OPEC have exerted an upward pressure on oil prices throughout the year.

The main oil reference points rose up to four years a month before the sanctions entered into force, but the recovery has been dazzling since then.

Oil prices have declined by 30 percent since the beginning of October, and a broad consensus has been reached on wider market sales and demand for next year demand.

"The policy of the United States has played a role in pushing down … (but) the price is still led by supply and demand," Darling said.

President Trump came after Saudi Arabia's defense of Saudi Arabia, thanks to the kingdom for helping control oil prices, even for support from Riyadh, after journalists have been assassinated by Jamal Khashoggi. .

The Trump government has convinced Saudi Arabia to increase production and to pump more oil to other producers to offset the impact of restrictive policy on Iran.

However, in December, Saudi Arabia plans to decide on OPEC's decision to lower production.

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