JPMorgan Recommends Maintaining Bullish Brent Oil Bets

JPMorgan Chase & Co. recommended investors maintain bets Brent oil prices will rise as global supplies drop and demand from developed countries increases.

Investors should hold on to long Brent positions and buy the spread between March and June contracts, JPMorgan analysts led by Lawrence Eagles, said in a research note dated Jan 13. Drilling delays resulting from regulations in the wake of BP Plc’s Macondo spill will reduce 2011 crude production by 175,000 barrels a day from pre-spill forecasts, while OECD inventories have fallen on recovering demand, the note showed.