Oil price outlook: Prepare for rally as the Fed to pause rate hikes

Oil prices are poised to rally soon as the Federal Reserve is expected to pause its rate hikes, analysts at JPMorgan said.Brent crudeJPMorgan predicts Brent will rise to $94 a barrel in the fourth quarter, up 9.5% from current levels.

Markets expect the Fed to raise rates one more time in May, lifting them by another 25 basis points to a target range of 5%-5.25%, according to theTo be sure, oil eventually turned negative after Fed pauses in 2000, 2006 and 2018 were followed by recessions, JPMorgan pointed out. JPMorgan predicts such a recession to show up at the end of 2023, or in 2024. And as inflation could stick around 4% this year, the Fed is unlikely to cut its rates.

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