JPMorgan Forecasts 15% Spike in Oil by End of Year

JPM commodity analyst Larry Eagles, has hiked both his Crude and Brent expectations across the board, and now sees WTI going from $105 currently to a $120 by the end of the year and Brent crude to $135, reports Zero Hedge.

Eagles writes:

We remain alert to the potential to grow supply at a much faster rate, but ongoing decline in mature areas, supply risks in key producing countries together with the underperformance of some new frontier areas leave us to feel that it will be a greater risk in 2013/2014 than this year. More importantly, building economic momentum, albeit from a weak base, has the potential to pull oil prices higher for the next 12 to 24 months, and while downside risks remain in Developed and Emerging Markets, recent data strength together with high levels of liquidity being added by Europe and potentially Japan, and easing elsewhere provide upside. The quarterly path of our forecasts embody the timing of these risks, depicting an upward trending market lifting our Brent price forecast for 2012 to $118/bbl and to $125/bbl in 2013. Around this average, we also lift and widen our expectations for the likely price range over the course of 2012 from $100 to $120/bbl to $105 to $135/bbl.

Bottom line, even without tensions climbing in the middle east, oil prices are headed much higher. The serious price inflation is about to begin.