Oil prices headed lower this year and next, J.P. Morgan forecasts

• Contradicting conventional wisdom, J.P. Morgan says crude oil prices are heading for a downturn later this year and will sink even lower next year as supply and demand fundamentals weaken.
• "While geopolitical tensions and lingering risks of large supply disruptions remain an upside risk throughout 2H18, we think that prices will be corrected downwards towards end of the year and remain capped in 2019," JPM says as it cuts its 2018 crude forecast for WTI by $3 to $62.20/bbl and to $58.25/bbl for 2019; the firm leaves its 2018 Brent outlook unchanged at $69.30/bbl while trimming its 2019 forecast by $1 to $63/bbl.
• However, "there might be one last hurrah (upside) when it comes to prices especially if OPEC were to announce a release of barrels which is less than what markets have priced in currently," JPM says.
• In today's trade, WTI -0.3% to settle at $65.74 while Brent -1.2% at $76.40.
• ETFs: USO, XLE, OIL, UWT, UCO, VDE, XOP, DWT, ERX, OIH, SCO, BNO, DBO, ERY, DIG, BGR, GUSH, DTO, FENY, USL, IYE, DUG, DRIP, IEO, FIF, DNO, NDP, PXE, OLO, RYE, PXJ, SZO, CRAK, FXN, OLEM, WTIU, DDG, OILK, NANR, OILX, WTID, USOI, USOU, USOD, FTXN, JHME, UBRT, ERYY, DBRT, ERGF, OILD, OILU, USAI
• Now read: FENY: A Good Way To Play The Oil Price Recovery

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