JPMorgan forecast on Monday Brent crude at $57 a barrel and West Texas Intermediate (WTI) at $53 in 2027, while keeping its 2026 estimates unchanged at $58 and $54 respectively.
Brent crude futures were trading around $62.54 a barrel as of 1434 GMT, while U.S. West Texas Intermediate crude was trading at $58.08.
JPMorgan expects global oil demand to grow by 0.9 million barrels per day in 2025 to 105.5 million bpd. Similar gains are expected in 2026 before accelerating to 1.2 million bpd in 2027, it said in a note. Global oil supply is forecast to outpace demand, growing at three times the rate of demand in both 2025 and 2026 before slowing to about one-third of that pace in 2027, JPMorgan said. About half of the supply gains will come from non-OPEC+ producers, driven by strong offshore projects and continued momentum in global shale output, the bank added. OPEC+, or the Organization of the Petroleum Exporting Countries plus Russia and other allies, has been boosting output since April. Other producers, such as the U.S. and Brazil, are also increasing supply, adding to glut fears and weighing on prices. “On balance, as long as demand growth remains in the range of 0.8 to 1.3 mbpd – sufficient to match the pace of non-OPEC+ supply over the next two years – the market should remain relatively balanced, assuming OPEC+ holds steady,” JPMorgan said.
(Reporting by Anushree Mukherjee in Bengaluru; Editing by Jan Harvey and Emelia Sithole-Matarise)