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US Crude Oil Equilibrium $70/b: JP Morgan

OIL

We estimate the equilibrium price of WTI oil at around $70/bbl,” JP Morgan said in a report cited by Bloomberg.

  • Prices of $60/bbl would be “too low to incentivize production, potentially leading to a spike to $100/bbl in the following year,” the report added.
  • Looking towards the US election, a Donald Trump victory could open up the Gulf of Mexico and Alaska for further exploration and development.
  • Trump could also reverse the Biden administration’s cancellation of drilling leases in Alaska’s Arctic National Refuge, JP Morgan said.

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