JPMorgan warns: Oil price could reach $120 per barrel due to supply constraints

JPMorgan analysts have expressed outrage, warning of a possible rise in Brent crude oil prices to $120 per barrel in the near future, which will hit the global economy, Business Insider reports.

Experts emphasize that oil prices could hit triple digits if major suppliers continue to reduce production. High oil prices could almost halt global economic growth in the next quarter.

Prices for Brent crude oil rose by 27% over the past month and reached their highest level in 10 months. According to analysts, about 25% of this growth is due to unexpectedly high demand for oil around the world, while 75% is due to significant production cuts made by OPEC+ countries over the past year.

One of the factors contributing to the price increase is the increased demand for oil due to the post-pandemic economic recovery and industry development. The price increase is also due to restrictions on oil production by OPEC+.

There is currently an oil shortage in the world, and this could lead to an even greater price increase. According to JPMorgan, if oil production is not increased, it will affect the global market and delay the economic recovery.