JP Bank: Oil prices could fall to $30 a barrel in 2027
JP Bank: Oil prices could fall to $30 a barrel in 2027
11-25-2025
Information/Translation…
JPMorgan Chase Bank predicts that the price of Brent crude, the global benchmark for crude oil, will fall to $30 per barrel by 2027 due to a massive market surplus. Goldman Sachs also predicts that the average price of West Texas Intermediate (WTI) crude, the US benchmark, will reach $53 per barrel in 2026 amidst a surplus of two million barrels per day, and advises investors to short oil now.
The British website Oilprice.com, in a report translated by the Information Agency, stated that “the oil market is expected to rebalance in 2027 after the current large supply surge, including production from OPEC+ and non-OPEC producers in the Americas, is reflected in the system.”
It added, “Brent crude prices have fallen by 14 percent since the beginning of the year and were trading relatively stable at $62.59 per barrel early Monday, as the oil market awaited news on the resumption of peace negotiations in Ukraine.”
He explained that “currently, despite concerns about oversupply, analysts and investment banks do not expect oil prices to fall to $40 or lower, even with the expectation of a near-term decline due to the abundant supply from OPEC+ and non-OPEC producers in the Americas. Analysts also say that peace in Ukraine could negatively impact energy prices, with the potential easing of some sanctions and restrictions imposed on Russia.”
Dan Stroeven, co-head of global commodities research at Goldman Sachs, told CNBC last week that the investment bank’s forecast for next year is that oil prices are headed for further declines, and that investors should short oil for now.
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