Brent Oil Commentary by JP Morgan

Brent oil comment was received from the US investment bank JP Morgan, who examines the oil industry. JP Morgan stated that there could be significant losses in global supply due to investment cuts, however Brent oil price could rise to $ 60 / barrel in two years. Oil prices fell 8 percent on Thursday due to the decline in shares and concerns about the second wave, and a slight recovery occurred on Friday. West Texas oil (WTI) hovered above $ 36 with an increase of 0.33 percent, while Brent oil's barrel increased by 0.67 percent and traded at $ 38.81. JP Morgan predicted an average of 91 million barrels / day for this year, reducing global oil demand projections by 9 million barrels for 2020. The bank's statement stated that consumption could only return to the level of 100 million barrels / day before the epidemic in November 2021.

OPEC's Share in Supply Will Rise Again

The Bank points out that the share of OPEC in total supply was 39 percent in 2016 and this share decreased to 33 percent in 2020-2021 and predicts that this rate will rise to 45 percent by 2025. The bank, which emphasized that Saudi Arabia's market share in the global oil market has reached the highest level since the 1980s, predicted that Saudi Arabia's share will increase from 11.6 percent this year to 15 percent by 2025, an unprecedented share since 1980s.