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JP Morgan ups 2009 US oil price forecast to $65/bbl

JP Morgan has again raised its forecast for 2009 US oil prices, this time to $65 a barrel versus $55.63 in their latest monthly energy report in May, on expectations of economic recovery and seasonal factors.

“If economic forecasts are right, and we are coming out of the recession, the path for oil is going to be somewhat higher,” said Lawrence Eagles, Global Head of Commodities for JP Morgan Chase at the Asian Oil and Gas Conference.

“Even without a rapid V-shaped recovery in the second half of the year, we are likely to see demand at 1.5-3.0 million barrels (per day), higher than at this current point of the cycle. The risk is on the upside,” he said. (Reuters)