And now JP Morgan is the bank warning that oil prices may go substantially lower—not only compared to previous price projections, but also compared to the current price of oil.
JP Morgan slashed its 2018 WTI forecast by US$11—from US$53.50 to US$42.
Meanwhile, JP Morgan sees OPEC’s extension deal as having no exit strategy, with the cartel not communicating what its end game is.
On the other hand, U.S. crude output is expected to keep growing for several quarters due to lower breakeven costs and higher investment, according to JP Morgan.
JP Morgan also sees OPEC losing more than it gains with the output cut deal.
Crude Oil Price Analysis for June 9, 2017
Crude oil prices rebounded slightly on Thursday following Wednesday’s route which say prices tumble in the wake of the larger than expected build in crude oil inventories.
Resistance on crude oil prices is seen near the 10-day moving average at $47.98.
TechnicalsCrude oil prices experienced a dead cat bound, following Wednesday’s slide.
Crude oil has since settled 4% lower near $46.20 in the wake of the large EIA crude build, and as fresh rounds of instability in Qatar and Iran threaten to weaken OPEC, though any potential MidEast crisis tends to strengthen oil prices on supply chain risks.
Multiple urban starts tumbled 10.2% to 178.5k units in May while single unit starts pulled-back 8.9% to a 59.8k pace.
collected by :Jack Alex