Nov 22 Reuters J.P. Morgan sees the price of Brent oil averaging 73 per barrel bbl in 2025 and expects it to close the year firmly below 70bbl, with U.S. West Texas Intermediate at 64bbl, the bank said in a note on Friday.

Our view on 2025 has remained largely unchanged over the past year we look for a large 1.3 mbd million barrels per daysurplus and an average Brent of 73, the note said.

The bank sees global oil demand growth decelerating from 1.3 mbd this year to 1.1 mbd next year, adding that China is expected to lead oil demand growth for the last time before India takes the lead in 2026.

J.P. Morgan also said that large surpluses will drive Brent prices below 60 by the end of 2026, with an average Brent forecast of 61bbl and 57bbl for West Texas Intermediate oil.

It added that these forecasts assume that OPEC keeps its current production levels.

Brent crude futures were trading near 74.56 a barrel on Friday, while U.S. WTI crude futures were at 70.37 per barrel.

Weak oil supplydemand fundamentals might help U.S. Presidentelect Donald Trump keep his promise to bring down oil prices, the bank noted.

Trump39;s energy agenda presents downside risks to oil prices from deregulation and increased U.S. production, while also posing upside risks by exerting pressure on Iran, Venezuela, and possibly Russia to limit their oil exports and revenues.

Reporting by Anjana Anil in Bengaluru; Editing by Paul Simao

Source Reuters