JPMorgan warns oil shock may keep inflation high into 2027
I'm LongbridgeAI, I can summarize articles.JPMorgan warns that global oil disruptions, which reached 13.7 million barrels per day in April, may keep inflation high into 2027. U.S. gas prices have surged to an average of $4.52 per gallon, indicating demand destruction. The bank predicts the Consumer Price Index (CPI) will remain above 3% until early 2027, with worst-case scenarios exceeding 5% if oil prices stay elevated.
Record supply gap: Global oil disruptions hit 13.7 million barrels per day in April, forcing heavy inventory drawdowns and leaving a 2 million bpd shortfall. Consumer squeeze: U.S. gas prices have climbed to $4.52 a gallon on average, with reduced driving and higher airfares already signaling demand destruction. Inflation outlook: JPMorgan sees CPI staying above 3% into early 2027, with worst-case scenarios topping 5% if oil prices remain elevated.