California Resources price target raised to $86 from $72 at JPMorgan

JPMorgan raised the firm’s price target on California Resources (CRC) to $86 from $72 and keeps an Overweight rating on the shares. The firm says oil market fundamentals “shifted on a dime” due to the Middle East conflict. The war has significantly reduced global productive capacity and “quickly evaporated the risk” of a supply glut in 2026 following the closure of the Strait of Hormuz, the analyst tells investors in a research note. JPMorgan would not be surprised to see a $5-$10 per barrel geopolitical risk premium embedded into the long-end of the oil price curve.