Crude prices have cooled lately, thanks to minimal damage from Hurricane Beryl as it swept through Texas energy hubs - but brokerage firm JPMorgan (JPM) is gung-ho about energy demand going forward. Citing an expected continuation of the “revenge travel” trend, commodity analysts from the firm are forecasting that demand for crude and products will surge by 3.5 million barrels per day (mbd) and 2.4 mbd, respectively, between April and August.
Along those same lines, the International Air Transport Association (IATA), a trade group representing about 330 airlines worldwide, expects industry expenses to increase by 9% this year, due in part to higher jet fuel prices, marking another key tailwind for energy stocks. Separately, energy prices should also find support from the extension of OPEC production cuts, totaling 5.8 million barrels a day, through the next year.
