Global Commodities: China’s reopening supports $90 Brent as weather hurts global gas prices

Natasha Kaneva is joined by Parsley Ong and Shikha Chaturvedi to discuss the implications of an earlier than expected reopening of the Chinese economy and recent revisions to our global natural gas outlook. While investors so far have chosen to play China’s reopening through metals, we believe oil is positioned to benefit the most. We upgrade China oil demand but maintain our Brent price forecast for the year at $90/bbl and see prices  averaging $85 in 1Q, scaling up to $89 in 2Q and exiting the year at $94. Absent any major geopolitical events, it would be difficult for oil prices to breach $100 in 2023. Meanwhile, a bullish narrative for global natural gas markets is hard to maintain when winter weather struggles to appear – particularly when supply is plentiful. Speakers Natasha Kaneva, Head of Global Oil and Commodities Research Parsley Ong, Head of Asia Energy and Chemicals Equities Research Shikha Chaturvedi, Head of Global Natural Gas Research   This podcast was recorded on 20 Jan 2023 This communication is provided for information purposes only. Institutional clients can view the related report https://www.jpmm.com/research/content/GPS-4311885-0 and https://www.jpmm.com/research/content/GPS-4309913-0 for more information; please visit www.jpmm.com/research/disclosures for important disclosures. © 2023 JPMorgan Chase & Co. All rights reserved.