Forex – JPMorgan (NYSE: JPM), OPEC+ expects current production levels to be maintained for at least another year, with a target of 2025 BrentHe said it would lead to an average price of $75 for crude oil.
The Organization of the Petroleum Exporting Countries (OPEC) and its allies, known as OPEC+, said they had agreed to delay oil output increases planned for October and November and could pause or reverse the increases further if necessary.
JPMorgan said the opportunity to phase out production cuts is now closing, with prices likely to fall below $60 by the end of 2025.
“$60 is not a fair price for either producers or consumers, and OPEC will need to cut another 1 million barrels per day (mbd) if it sticks to market management,” the bank said.
JPMorgan said the market is currently looking for a price point that would discourage OPEC+ from providing unnecessary supply amid significantly reduced expected demand in 2025. Reflecting the recent decline in oil prices, the bank lowered its 2024 fourth-quarter call for oil prices to $80 a barrel from $85.
