JPMorgan predicts Brent crude to average $83 in 2024

Oil drilling rigs

Brent crude prices are poised to average $83 per barrel in 2024 amid a stable market, as predicted by JPMorgan Chase & Co.’s analysts in a recent note. This projection accounts for the resilient oil demand in the US, robust growth in emerging markets (EM) and steady European markets.

Looking further ahead, average Brent crude prices are seen to drop to $75 per barrel in 2025. This is given the increased energy efficiency and growth in electric vehicle (EV) sales at the expense of internal combustion engine vehicles, leading to lower demand for fuels, JPMorgan analysts said, anticipating weaker jet fuel demand as a result.

As for global oil demand, it is set to rise by 1.9 million barrels per day (bpd) this year. However, the pace of growth will slow to 1.6 million bpd in 2024, the bank added.

"Despite sustained economic headwinds, we see demand ... underpinned by robust EM, resilient US and weak but stable Europe," the bank’s analysts wrote.