JPMorgan warned of oil rise to $120

JPMorgan has cautioned that oil prices could potentially reach $120 per barrel.

It is predicted by Goldman Sachs that Brent will increase to $100.

Investors in hedge funds are wagering that the prices of certain assets will exceed $100.

Citigroup has acknowledged that prices have been reduced due to the increased supply of oil from countries that are not part of OPEC+.

On Tuesday, Brent oil prices rose to nearly $96 per barrel, the highest level since November of last year. Additionally, WTI quotes were close to $94.

Fears of an oil shortage on the market, caused by reduced exports from Russia and Saudi Arabia, have caused quotes to rise. Additionally, optimism about the recovery of the Chinese economy is providing further support to prices.

JPMorgan has warned that Brent crude oil prices could soon reach $120 per barrel, according to a report by RBC. If major suppliers continue to reduce their supplies to the market, oil prices could skyrocket into triple digits.

Morgan Stanley predicts that oil prices will remain high until 2024, which could have a detrimental effect on global economic growth and potentially lead to a recession.

Goldman Sachs has predicted that the price of oil will exceed $100 per barrel in the upcoming year. This is due to the fact that global demand is at an all-time high and OPEC+ countries are still limiting the amount of supply.

Goldman Sachs estimates that the oil market will have a deficit of 2 million barrels per day in the current quarter, and this will decrease to 1.1 million b/d in the fourth quarter of 2023. The bank also predicts that oil prices will remain high in the coming year.

According to the Financial Times, hedge funds are making a wager that Brent will soon surpass $100. In the two weeks ending on September 12th, the combined net long exposure to Brent and WTI increased by 35%, reaching an 18-month peak of 527,000 contracts.

Citi acknowledges that oil prices could temporarily exceed $100, however, they would be highly volatile. Prices could decrease in the future due to increased production from countries that are not part of the OPEC+ agreement.

Citi predicts that oil production from non-OPEC nations will rise by 1.8 million barrels per day (bpd) in 2021, and an additional 1 million bpd in 2022. This is expected to come from Canada, Brazil, Argentina, Guyana and Norway.

The FxPro analyst team states that the bullish outlook for oil is bolstered by the technical picture on the charts. They add that the corrective price pullback in the second half of August opened the door for further momentum, which is currently in progress.