JP Morgan AM: Several factors are providing support for oil prices

JP Morgan AM: Several factors are providing support for oil prices

8 april 2024

Grondstoffen Geopolitiek
Olieplatform.png

Oil prices have rallied in recent months, with brent crude up around 20% since mid-December. Geopolitics, supply cuts and resilient demand are all playing their part.

Tensions remain elevated in the Middle East, while attacks on Russian energy infrastructure have added to concerns over global supply. OPEC+ members announced last month that they will be extending supply cuts to the end of June, which alongside expectations of a near-term increase in global demand, has lifted oil prices further.

Across the developed world, energy deflation has done lots of the heavy lifting in putting headline inflation comfortably on a downwards trajectory. Given these latest developments in the oil market, the inflationary impact of any further upswing in oil prices is therefore a key tail risk for investors to monitor in the coming months.

08042024 JP Morgan AM

Gerelateerde berichten