A day after the EIA’s cut, J.P Morgan Research said Brent oil prices will remain “largely flat” in 2024 at US$83 per barrel, adding that it could edge down a further 10% in 2025. In a note yesterday, the brokerage trimmed its 2024 Brent crude price assumption to US$84 per barrel, down from US$86 per barrel. Hence, the upside to crude oil prices remains capped. Russia, on the other hand, requires high oil prices to continue, funding its war efforts in Ukraine. Nevertheless, Kenanga Research’s Lim expects the crude oil market’s surplus to narrow in 2024 to 0.3 million bpd, compared to 0.5 million bpd in 2023.

Source: The Star December 28, 2023 06:14 UTC