JPMorgan Lowers 2025 Brent Oil Forecast 11% to $66

JPMorgan Chase & Co. has revised its forecast for Brent crude oil prices in 2025, lowering the projection from $73 per barrel to $66 per barrel. This adjustment comes as the bank's analysts, including Natasha Kaneva, note that the price has already reached their year-end prediction eight months ahead of schedule. The downward revision is attributed to the active efforts of the Trump administration to lower oil prices, which are unlikely to intervene unless prices fall to $50 per barrel.

The bank has also adjusted its forecast for 2026, lowering the Brent crude oil price projection from $61 per barrel to $58 per barrel. Additionally, JPMorgan Chase & Co. has reduced its forecast for WTI oil prices, setting the 2025 projection at $62 per barrel and the 2026 projection at $54 per barrel. These revisions indicate a more cautious outlook on oil prices, reflecting potential changes in supply and demand dynamics, as well as geopolitical and economic factors.

The bank's analysts anticipate that U.S. shale oil producers will be among the first to feel the impact, with predictions of a reduction in drilling rigs starting from July. Furthermore, OPEC+ may need to implement new production cuts in 2026 to stabilize the market. This highlights the delicate balance between supply and demand in the global oil market and the need for coordinated efforts to maintain stability.

The downward revision in oil price forecasts by JPMorgan Chase & Co. underscores the uncertainty and volatility in the oil market. Oil prices are influenced by a multitude of external factors, including geopolitical developments, economic indicators, and shifts in energy policies. The bank's adjustment serves as a reminder of the dynamic nature of the energy sector and the importance of staying informed about the latest trends and developments. Market participants should closely monitor the evolving situation and adapt their strategies to navigate the complexities of the oil market effectively.