JP Morgan lowers oil prices forecasts
Baku, Azerbaijan, Sept. 6
By Aygun Badalova - Trend:
Analysts of the US JP Morgan bank reduced probability of oil production deal in Algeria to 10 percent from 35 percent, and they believe that this disappointment relative to market expectations will likely spur renewed price weakness.
Analysts downgraded their end-3q’16 Brent and WTI price forecasts to $40 a barrel and $38 a barrel respectively.
Average 3q’16 Brent and WTI price forecasts are dropped to $46 a barrel and $44 a barrel respectively.
Analysts left 4q’16 forecasts unchanged for now, saying that they recognize that the risks around their year end forecast of $54 a barrel are almost entirely skewed to the downside.
For 2017, JP Morgan analysts forecast both Brent and WTI prices at average $56.75 a barrel.
The informal OPEC meeting is expected in late September in Algeria. It is expected that the talks on oil production freeze will be held between OPEC and non-OPEC countries.
Oil prices were mixed on September 6 after a volatile session the day before triggered by hopes for a production freeze agreement from major producers, the Wall Street Journal reported.
The November contract for global crude benchmark Brent was down 0.63 percent at $47.33 while its US counterpart WTI was up 1.25 percent at $45.02 for October deliveries.