J.P. Morgan Chase raised its 2012 price forecast for Brent crude by $6 to $118 a barrel on supply risks and rising economic growth.
The bank also raised its 2013 forecast for Brent to $125 a barrel, up from $121.
"Ongoing decline in mature areas, supply risks in key producing countries together with the underperformance of some new frontier areas leave us to feel that it will be a greater risk in 2013/2014 than this year," analysts led by Lawrence Eagles said in a research note dated February 19.
"More importantly, building economic momentum, albeit from a weak base, has the potential to pull oil prices higher for the next 12 to 24 months."
Front-month Brent crude hit a session high of $121.15 per barrel, a level not seen since mid-June last year, as Iran cut supply to Britain and France, while a policy easing by China and hopes for a Greek bailout also supported prices.
