In the previous quarter, oil prices increased by an average of 28%, reaching a 2023 high in September as OPEC+ output cutbacks and further supply limitations from Saudi Arabia and Russia produced a market deficit.
Following the recent surge, JPMorgan analysts recently stated in a client note that they anticipate a fall in oil sales this quarter.
Natasha Kaneva, head of the global commodities strategy team at JPMorgan, stated, “After achieving our goal of $90 in September, our end-year target stays $86 [per barrel]”.
According to Kaneva, the inventory pulls observed throughout the summer will gradually change into a construction process during the last few months of the year.
The note headlined “Demand destruction has begun (again)” states that “in addition, demand restriction from increasing oil costs is currently being obvious in the US, Europe, and some EM countries.”