OPEC +’s decision to cut production is precautionary… and Brent crude will reach $96 by the end of 2023
JPMorgan believes that the OPEC + move to implement an additional voluntary reduction in production until the end of 2023 is a precautionary measure to ensure that the market surplus does not continue into the second half of this year.
In a note on Sunday, the second of April, the American banker predicted that the price of Brent crude would reach $96 per barrel by the end of 2023.
JPMorgan referred to its previous expectations, in which it was likely that the US administration and the group of oil-producing countries would take decisions in the first quarter, noting that the surprising thing about this issue is that those decisions were not issued earlier than this.
Oil prices interacted with the OPEC + decision to rise by more than 6% during the Monday session.
Goldman Sachs also raised its forecast for the price of Brent crude for December 2023 by about $5 to $95 a barrel, while the forecast for December 2024 was raised by $3 to $100 a barrel.
For its part, the White House stated that OPEC’s production cuts are unwise due to the uncertainty of the market.
A spokesman for the US National Security Council announced that the OPEC + cuts are illogical at this time, given the uncertainty in the market.