JPMorgan lifts 2012 Brent price view on supply risks

Last Updated: Monday, February 20, 2012 - 09:27

Singapore: JP Morgan Chase raised its 2012 price forecast for Brent crude by USD6 to USD118 a barrel on supply risks and rising economic growth.

The bank also raised its 2013 forecast for Brent to USD125 a barrel, up from USD121.

"Ongoing decline in mature areas, supply risks in key producing countries together with the underperformance of some new frontier areas leave us to feel that it will be a greater risk in 2013/2014 than this year," analysts led by Lawrence Eagles said in a research note dated February 19.

"More importantly, building economic momentum, albeit from a weak base, has the potential to pull oil prices higher for the next 12 to 24 months."

Front-month Brent crude hit a session high of USD121.15 per barrel, a level not seen since mid-June last year, as Iran cut supply to Britain and France, while a policy easing by China and hopes for a Greek bailout also supported prices.

Bureau Report

First Published: Monday, February 20, 2012 - 09:27
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