Brent oil – JP Morgan on the price jump – clearly a supply shock

<p>Earlier in the week an analyst at JP Morgan said that:</p><ul><li>"investors should probably not worry too much about the recent spike in oil."</li></ul><p>Adding that pressure on the demand and supply side is easing:</p><ul><li>long-term investment into energy transition will dampen demand</li><li>the US increasing domestic oil supply is continuing to ramp higher</li></ul><p>Which all sounds a bit overly optimistic to me, especially in the near term. </p><p>The latest update from the bank on the higher price blames “clearly a supply shock" (ie the OPEC/Russia output cuts extensions)</p><ul><li>Combined, the OPEC+ alliance is holding back more than 4 mbd from the market, which is the highest level of cuts outside of recessions over the last two decades.</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.