JPMorgan struggles to predict oil prices as Iran conflict disrupts supplies

JPMorgan says it can no longer establish a baseline forecast for global oil prices as the US-Israeli conflict with Iran disrupts energy supplies.

According to Premium Times, the investment bank said uncertainty surrounding the conflict has made its endgame difficult to model, with 10 million barrels per day of supply disrupted.

The uncertainty is worsening concerns in Nigeria, where petrol prices have climbed above N1,400 per litre in Abuja following higher crude prices and a Dangote Refinery price increase.

Brent crude closed at $104.87 per barrel on Friday, while JPMorgan estimated its September fair value at about $90.

The bank said weaker global demand has helped markets absorb supply disruptions without an even sharper sustained increase in crude prices.