JP Morgan sees upside risk to 2013 oil prices

JP Morgan said on Friday it sees upside price risks conducive to oil prices moving to $130 per barrel for 2013 from ongoing geopolitical issues,low spare capacity,the potential for stock building,and currency-related issues.

The bank sees Brent prices for 2013 average at $121.25 per barrel and forecasts 2013 average WTI price at $114.25 per barrel.

“Our analysis suggests that supply constraints will again be reached by the end of 2013,driving a quarterly rise in our ICE Brent price forecast to $130/bbl,” it said.

JPMorgan maintained its price projection of $115 a barrel for Brent crude oil,and $97.50 a barrel for WTI through 2012.