J.P. Morgan warns: Oil prices may crash to $30 by 2027!
Recently, J.P. Morgan dampened the market's spirits—they predict that, at the current pace of increasing oil supply, Brent crude could fall to $30 a barrel by 2027! In other words, oil prices might collapse due to oversupply and insufficient demand.
Their reasoning is straightforward: In the next two years (2025 and 2026), the growth rate of oil supply will be three times that of demand, which the market cannot absorb. If there are no significant production cuts, oil prices will continue to decline. Even if OPEC's production cuts are disregarded, oil prices might only be in the 40s by 2027, and could even drop to $30 by the end of the year!
While Goldman Sachs' views are not as extreme, they also believe oil prices will decline in the short term, estimating that WTI prices will hover around $50 in 2026. If Russia and Ukraine make progress in peace talks and restrictions are eased, the pressure on oil prices will be greater.
The outlook for oil prices is weak, with oversupply and sluggish demand, which will affect the global commodity market. The cryptocurrency market should not take this lightly; risk assets may experience a chain reaction, so be prepared to respond.
