Iran, Israel and Brent crude oil
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Banks are cutting estimates for the average oil price this year to below $60 a barrel amid production hikes from OPEC+ and flat crude demand growth, according to a survey from the law firm Haynes Boone LLP.
JP Morgan is sticking to its base-case oil price forecast for 2025, projecting Brent crude will trade in the low-to-mid $60s, despite a sharp escalation in geopolitical tensions involving Iran, the U.
Tensions at the Strait of Hormuz risk 20M bpd in crude oil flow, fueling a sharp rally in oil futures and boosting market volatility.
JP Morgan downplayed geopolitical concerns on Thursday and maintained its base case forecast for oil prices to stay in the low-to-mid $60s through 2025 and $60 in 2026, but said certain worst-case scenarios could send prices surging to double those levels.
Rather, it is geopolitical factors—specifically, escalating tensions in the Middle East—that are unsettling markets and pushing prices higher.
Midland Reporter-Telegram on MSN9d
Banks lower long-term oil price forecasts in Haynes Boone surveyTwice per year, law firm Haynes Boone surveys banks that lend to the energy industry to take their pulse on where oil and gas prices are heading.
Following Israel's military operation on Iranian nuclear sites, J.P. Morgan warns oil prices could surge to $120 a barrel if Middle East tensions escalate. Brent crude futures already jumped nearly 9%,
That sent the yield on the 10-year Treasury up to 4.41% from 4.36% late Thursday. Higher yields can tug down on prices for stocks and other investments, while making it more expensive for U.S. companies and households to borrow money.
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