RIYADH: International oil benchmark Brent crude is projected to reach $125 per barrel during the second half of 2022 due to limited output capacity, the Financial Times reported, citing forecasts from investment banking firm JPMorgan. Brent crude reached $102 per barrel on Thursday, its highest in eight years, as the Russia-Ukraine conflict deepened. “Spare capacity is falling, and the oil market is having to reprice that lack of safety margin,” the Financial Times reported, citing Christyan Malek, head of global energy strategy at JPMorgan. Spare capacity has plunged to 2.8 million barrels a day, down from five million barrels a day historically, according to JPMorgan. On top of the conflict in Eastern Europe, lack of investments in the sector and the failure of Opec and its allies to meet production targets since July have exacerbated the pressure on prices. Moreover, natural gas has hit $99 per megawatt on Thursday and is also expected to climb even further due to the Russia-Ukraine situation. Around 40 percent of Europe’s gas supply comes from Russia.