JPMorgan, HSBC Forecasts Oil Supply Recovery As Gulf Exports Rebound

JPMorgan has estimated that the petroleum market has returned to surplus, just as HSBC raised its production forecasts for Saudi Aramco.

Their outlook follows gradual recovery of oil supplies from months of disruptions associated with the Middle East conflict.

In separate assessments released Wednesday, November 4, the banks pointed to recovering regional exports, increased production outside the Middle East, and weaker global consumption as evidence that physical supply conditions are improving.

JPMorgan estimates the global oil market recorded a surplus of 1.1 million barrels per day in September, expanding to 1.4 million barrels per day in October. That compares with an ave...