JP Morgan forecasts Brent crude prices to reach $185 at 2022-end

Oil drilling rigs

JPMorgan Chase & Co. stated that the benchmark Brent crude prices are forecast to reach $185 a barrel at the end of 2022, if fears about Russian crude supplies continue.

Currently, 66% of Russian oil is struggling to find buyers, the investment bank said in a note.

Brent crude hit $120 on March 3 amid concerns that the Russian crude supplies would be affected by sanctions against Moscow after Russian President Vladimir Putin sent forces to attack Ukraine.

“In the short term, the scale of the supply shock is so large that oil prices need to reach and stay at $120 a barrel for months to incentivize demand destruction,” JPMorgan Chase analysts said.

They added that there will likely be ramifications for Russian oil sales into Europe and the U.S., potentially impacting up to 4.3 million barrels per day, especially as sanctions widened.

Without a return of Iranian barrels to the market, oil prices are expected to average $115 in Q2, $105 in Q3 and $95 in Q4, the investment noted.