(Seoul=Yonhap Infomax) Yong Wook Kwon – JP Morgan has warned that oil prices could plummet by as much as 50% within the next two years.


According to Business Insider (BI) on the 25th (local time), the bank explained, "While supply is expected to steadily increase, the pace of demand growth is slowing."


This supply-demand imbalance could drive oil prices down by 50% by the end of 2027.


JP Morgan projected, "Even if demand continues to rise gradually, oil supply will increase at a much faster pace—expanding at three times the rate of demand growth this year and next."


The bank added, "Despite broad-based bearish forecasts for oil, demand has consistently exceeded expectations. However, supply has already outpaced this growth by more than double, with most of the increase coming from the Americas."


JP Morgan noted that the increase in crude supply will be led primarily by non-OPEC countries, with the United States being one of the largest contributors.


JP Morgan stated, "Under these conditions, Brent crude prices are likely to fall below $60 per barrel next year, dropping to the low $50s in the fourth quarter. By 2027, the outlook deteriorates further, with prices potentially sliding into the $30s by year-end."


Currently, Brent crude futures are trading around $62 per barrel.


ywkwon@yna.co.kr


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