New Delhi, May 12: Global crude oil prices are likely to remain in the low $100-per-barrel range for an extended period, as persistent supply disruptions and logistical bottlenecks linked to tensions in West Asia continue to weigh on energy markets, according to JPMorgan Chase & Co..
The investment bank’s revised outlook suggests that prices will stay elevated for most of the year, even if the Strait of Hormuz resumes normal operations in the coming weeks. Ongoing disruptions in shipping, refinery activity and tanker availability are expected to prevent a quick correction in global crude prices.
JPMorgan estimates that Brent crude could average around $97 per barrel in 2026, indicating continued tight supply conditions in the medium term. The report noted that reopening key transit routes alone would not stabilise markets immediately, as broader logistical challenges across the oil supply chain may persist for months.
Reflecting these concerns, international benchmark Brent crude was trading above $105 per barrel on Tuesday, rising about 1 per cent after comments by Donald Trump criticising Iran’s response to a US peace proposal heightened geopolitical tensions.
Similarly, West Texas Intermediate (WTI) crude hovered near the $100-per-barrel mark, also gaining close to 1 per cent.
Adding to supply pressures, output from OPEC fell by 830,000 barrels per day in April to 20.04 million barrels per day.
The surge in oil prices also weighed on domestic equity markets, with benchmark indices Sensex and Nifty declining by around 1 per cent amid concerns over inflationary pressures and economic impact.
