JPMorgan Successfully Predicted Recent Oil Price Increase

Posted in Top Headlines by on February 2, 2018

Banks look at a number of factors when trying to determine what the price of a commodity will be in the upcoming year. One of those factors, of course, is demand. Another is production, and beyond that, they look at estimates for other market conditions that may impact that particular commodity.

One of the major considerations that caused JPMorgan to increase their estimate for the price per barrel of oil in 2018 was higher than expected global economic growth. This led to the prediction of average oil prices for the year hovering around $70. If the surge in prices at the end of January is any indicator, they may be right.

Of course, they also factored in how crude oil producers will respond to this upturn in prices. Chances are good that prices close to $70 per barrel will motivate producers to flood the market with more oil. However, as people who have been trading crude oil know, there is rarely a long-lived surplus on the oil market.

JPMorgan Prediction Is Higher Than Other Banks’ Estimates

When the largest banks and investment firms release their predictions for the upcoming year’s market changes, they are often rather similar. However, in the case of 2018’s crude oil price predictions, there’s a noticeable gap in predictions.

Bank of America Merrill Lynch forecasts an average price per barrel of just $56 in 2018, with $70 being the highest likely price per barrel. Interestingly, Goldman Sachs was originally forecasting oil prices at $62 per barrel and suggesting a flat or downward trend.

However, they increased their forecast price on February 1, 2018, to $75 per barrel. One thing’s for certain: the fluctuations in oil prices will always present an opportunity for those who want to trade oil online.

Trading Oil on a Forex Platform Is Simple

There are many reasons why people who want to trade oil futures or crude oil use a Forex platform. Quick trades that reflect price shifts and low overhead are two compelling reasons. The ease of trading from your home or office is another. Those who monitor the markets can always buy or sell when prices change, allowing for a short-term profit.

How to Trade $10,000 of Oil with a Few Hundred Dollars

With an online forex trading platform you have the ability to trade with leverage of up to 100:1 buying power. That means that you could control an oil trading position of 1000 barrels of crude oil with only a couple hundred dollars. The price of energy changes daily, and you can take advantage of these market price fluctuations. With a live account your capital is at risk. Start today by opening a practice demo account.

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