17 Feb 2015
Brent crude could drop to $38 in March – JP Morgan
FXStreet (Edinburgh) - Analysts at JP Morgan see the barrel of Brent crude to slip towards the $38 area in March.
Key Quotes
“We think that the recent rally is a premature reaction to signs of supply adjustment as indicated by falling rig counts”.
“In fact, our commodity strategists think that that oil prices will fall to fresh lows in March/ April given a combination of slower crude buying on seasonal factors and a significant build in oil inventories in 1H”.
“The forecast for Brent is to average $42/bbl in Q1 and $43 in Q2, with a low point of $38 in March”.
Key Quotes
“We think that the recent rally is a premature reaction to signs of supply adjustment as indicated by falling rig counts”.
“In fact, our commodity strategists think that that oil prices will fall to fresh lows in March/ April given a combination of slower crude buying on seasonal factors and a significant build in oil inventories in 1H”.
“The forecast for Brent is to average $42/bbl in Q1 and $43 in Q2, with a low point of $38 in March”.