JPMorgan sees oil prices needing a sharp rise

JPMorgan analysts forecast a notable increase in energy prices will be required to bring global oil markets back into balance, according to an assessment dated April 24, 2026. The analysts, led by Natasha Kaneva, said current conditions are not sustainable and will need a price adjustment to restore equilibrium between supply and demand.

The bank’s view centers on the relationship between consumption and inventories. JPMorgan said commodity markets tend to move toward a point where available supply and inventory levels match the pace of consumption. In its assessment, the current mismatch implies that the market will need a substantial price move to align inventory withdrawals with demand.

JPMorgan described the adjustment as a corrective process driven by prices. The analysts said a significant rise would be needed either to encourage additional production or to reduce demand, closing what they characterized as an existing supply gap. In that framework, higher prices are presented as the mechanism that pushes the market toward balance.

For consumers, the bank’s forecast points to higher costs for petroleum products in the near future. JPMorgan’s assessment links the expected increase in energy prices to the need for the market to reconcile supply availability with consumption rates, rather than to a single event or policy change.