The JP Morgan analysts said, in a note issued this week, that the OPEC + move to cut production is a precautionary measure to ensure that surpluses in the market do not persist until the second half of 2023.
The bank did not change its price forecast, as it sees Brent crude reaching $89 in the second quarter of this year, then rising to $94 by the fourth quarter, and ending the year at $96 a barrel, reports Al-Jarida daily.
The bank indicated that it expected, earlier, that the administration of US President Joe Biden and “OPEC +” would move in the first quarter of this year.
This came after the “OPEC +” countries decided to suddenly reduce oil production, which led to escalating concerns about inflation, and increased pressure on the “US Federal Reserve” to continue raising interest rates.