Baku, Azerbaijan, March 30
By Aygun Badalova - Trend:
The US JP Morgan bank has raised 2016 prices forecasts to just under $38 a barrel for both Brent and WTI.
The forecasts for both WTI and Brent have been also raised to $47.75 a barrel, an increase of $4.5 a barrel from previous forecasts, according to JP Morgan's monthly Oil Market report, obtained by Trend.
"Oil markets have rallied strongly from their 1Q16 lows on the back of higher-than-normal supply disruptions, sustained demand growth and diminished threat from macro risks, the report said. The fear than central banks were running out of policy options has receded, and risks of a US recession have diminished, reversing their early-year acceleration."
JP Morgan expects Brent average price at $34 a barrel in the second quarter of this year, $38 - in the third quarter and $43 in the fourth quarter.
WTI average price is forecast at $33 a barrel in the second quarter, $39 in the third quarter and $44 in the fourth quarter of this year.
In 2017, the highest price both for Brent and WTI is expected at $55 a barrel in the fourth quarter.
Oil prices rose on Wednesday, supported by a weaker dollar and industry data showing a smaller-than-expected increase in U.S. oil inventories.
Brent crude, the global oil benchmark, rose 1.3 percent to $40.37 a barrel on London's ICE Futures exchange. On the New York Mercantile Exchange, West Texas Intermediate futures were trading up 1.7 percent at $38.94 a barrel, according to the Wall Street Journal.