Global financial institution JPMorgan predicts a drop in oil prices by 2025, with Brent crude averaging $70 per barrel.
Key Highlights from the Forecast
- OPEC+ Production Stability
- OPEC+ is expected to maintain current production levels throughout 2025, contributing to a gradual decline in prices.
- Projected Price Levels
- Brent Crude: Likely to fall below $70 per barrel by the end of 2025.
- U.S. Crude Oil: Anticipated to drop below $64 per barrel during the same period.
- Global Supply Surplus
- A projected 1.2 million barrels per day (bpd) surplus could exert downward pressure on prices.
Detailed Analysis
- Global Oil Demand Growth:
- Expected to slow from 1.3 million bpd in 2024 to 1.1 million bpd in 2025, before rebounding to 1.3 million bpd by 2026.
- Geopolitical Influence:
- The administration of President-elect Donald Trump aims to prioritize low oil prices, even at the expense of imposing stricter sanctions on nations like Iran, Venezuela, and possibly Russia to limit their oil exports.