Brent oil – JP Morgan on the price jump – clearly a supply shock | Forexlive

Earlier in the week an analyst at JP Morgan said that:

• “investors should probably not worry too much about the recent spike in oil.”

Adding that pressure on the demand and supply side is easing:

• long-term investment into energy transition will dampen demand
• the US increasing domestic oil supply is continuing to ramp higher

Which all sounds a bit overly optimistic to me, especially in the near term.

The latest update from the bank on the higher price blames “clearly a supply shock” (ie the OPEC/Russia output cuts extensions)

• Combined, the OPEC+ alliance is holding back more than 4 mbd from the market, which is the highest level of cuts outside of recessions over the last two decades.