With the markets heaving a sigh of relief after the ceasefire in the Middle East, news from the oil trade isn’t getting any better. According to a JP Morgan report, 2025 prices could go as low as $ 66/bbl and 2026 moving further southward to $ 58/bbl, a figure where rival Goldman Sachs also seems to be agreeing. While demand seems to be accelerating by around 800,000 bpd, supply is also seeing a hike by as much as 400,000 bpd. Also, the US focus on inflation will ensure that the prices don’t spike and lead to any distortion in the inflation figure, making it easier for the Fed to cut rates in September this year. On the other hand, if the current trend continues, analysts are even predicting that oil could fall to as low as $ 50/bbl. This could potentially lead to another round of reset in the oil business in the 12 months, where OPEC+ will be forced to cut production to adjust the demand-supply dynamics

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Source: https://www.jpmorgan.com/insights/global-research/commodities/oil-price-forecast#:~:text=%E2%80%9CGiven%20the%20diminishing%20price%20reaction,producing%20country%2C%E2%80%9D%20Kaneva%20said