The United States last week announced its largest-ever oil reserves release to combat rising oil prices. Oil prices slipped on the news. However, JP Morgan Chase & Co. (JPM) believes that the larger-than-expected loss of Russia’s oil supply could drive up crude prices again in the near term.
However, the U.S oil industry is not in any rush to increase supply. Investor pressure to maintain capital discipline is seen as the primary reason for the production restraint of publicly traded oil producers.
