Archive · 25 Nov 2025
JP Morgan Predicts Crude Oil Crash to $30s by 2027
JP Morgan, a big bank, thinks that the price of oil might drop a lot by 2027.
They say that people will want more oil, but companies will make even more oil than needed.
This means there will be too much oil, and the price might go down to around $30 per barrel.
This could happen because the amount of oil being made will grow much faster than the amount of oil people want to buy.
This could affect how much countries like India pay for oil.
Global oil demand is expected to increase by 0.9 mbd in 2025, reaching 105.5 mbd.
Oil demand growth is projected to continue at a similar pace in 2026 and accelerate to 1.2 mbd in 2027.
Supply is expected to grow at nearly three times the rate of demand in 2025 and 2026.
Supply growth will moderate in 2027 but will still be above the market's absorption capacity.
JP Morgan predicts crude oil prices could crash to the $30s by 2027 due to the supply-demand imbalance.
- Who
- JP Morgan
- What
- Predicted a crash in crude oil prices to the $30s by 2027
- When
- By 2027
- Where
- Global oil market
- Why
- Due to supply growing at a rate much higher than demand
- Projected Oil Demand in 2025
- 105.5 mbd
- Projected Oil Demand Growth in 2025
- 0.9 mbd
- Projected Oil Demand Growth in 2026
- Similar pace as 2025
- Projected Oil Demand Growth in 2027
- 1.2 mbd
- Projected Supply Growth Rate in 2025 and 2026
- Nearly three times the rate of demand
- Projected Supply Growth Rate in 2027
- Moderates but remains above market absorption capacity
