JP Morgan ($JPM (+2.07%)) has estimated that the equilibrium price for WTI crude oil ($OD7F) is around US dollar
per barrel per barrel. This means that a price of 60
US dollar
per barrel is considered too low to incentivize sufficient production, possibly leading to an increase to 100 US dollars per barrel next year.
They also forecast that the price of Brent crude oil ($IOIL00 (+1.12%)), the international benchmark, later in 2024 the mark of 100 US dollars per barrel could be tested. This is due to the decision of Russiato cut production in the second quarter by an additional 471k per day in the second quarter. JP Morgan estimates that Brent prices will rise by May the mid 90s US dollar and by September close to 100 US dollars could be reached if no political, supply or demand-side reactions.
