JPMorgan's commodities team ceased providing a baseline oil price forecast. This marks the first time since the beginning of the Iran conflict. The team cited an inability to model a potential endgame. Strategists noted that economic pressures, previously expected to end the conflict, have been surpassed without resolution.
The bank reported Brent crude trades around $106 per barrel. This is substantially higher than its estimated fair value of about $90. Significant supply disruptions contribute to this price. The report also noted record-high diesel prices in the U.S. Low inventories contribute to these prices. This underscores extreme volatility and uncertainty in energy markets.