SAN FRANCISCO (MarketWatch) -- J.P. Morgan Chase & Co. has lowered its price target for crude-oil futures, saying the recent bounce is likely temporary and forecasting prices around $65 a barrel by October.
The firm has tweaked its third-quarter price forecast to $75 a barrel, from $77 a barrel. Investors should view the recovery in prices in the coming week as "a selling opportunity," analysts at Morgan wrote in a note to clients.
Prices are likely to "move into the mid $60s before (the Organization of the Petroleum Exporting Countries) meets in October," they said.
Oil futures rose 2.5% on Friday, with the October contract adding $1.81 to $75.17 a barrel on the New York Mercantile Exchange. Oil gained 1.8% this past week, which comes after two straight weeks of losses.
"With global manufacturing growth set to halve over the coming months and projections of developing market growth being ratcheted down, it is hard to argue that this will be any more than a temporary bounce," Morgan said.
