Baku, Azerbaijan, April 25
By Aygun Badalova - Trend:
The US JP Morgan bank has raised 2016 prices forecasts by $3.5 per barrel to $41 per barrel for Brent and $40 per barrel for WTI.
According to JP Morgan's monthly Oil Market report, obtained by Trend, 2017 forecasts are raised to $52 per barrel for both WTI and Brent, an increase of $4.25 per barrel from bank analysts' previous forecasts.
Analysts retain the view that prices should soften in the short term.
"However, the bigger picture is still that the supply adjustment continues to build momentum and that should tighten balances during 2H16," they said.
JP Morgan expects Brent average price at $39 a barrel in the second quarter of this year, $45 - in the third and fourth quarters.
WTI average price is forecast at $38 a barrel in the second quarter, $45 in the third quarter and fourth quarters of the year.
In 2017, the highest price both for Brent and WTI is expected at $60 a barrel in the fourth quarter.
Oil prices fell on Monday as traders took profits following last week's strong rally.
The global benchmark, Brent, was recently trading down 1.7 percent at $44.36 a barrel. Its U.S. counterpart, West Texas Intermediate, was trading down 1.8 percent at $42.96 a barrel, according to the Wall Street Journal.