EEToday, 7th - The U.S. Energy Information Administration (EIA) has raised its crude oil price forecast, expecting the average price of Brent crude in 2027 to be $84 per barrel, $10 higher than its previous forecast; it also raised the forecast for the average annual Brent price in 2026 to $98, reflecting supply disruptions in the Middle East and declining global crude inventories, keeping the oil market tight.
The EIA noted that constrained supply through the Strait of Hormuz and conflicts related to Iran disrupting oil production and exports in the Middle East are the main factors driving up oil price forecasts. Although oil-producing countries such as Saudi Arabia are restoring exports via alternative routes and some Middle Eastern crude supply is gradually recovering, global inventories are still declining rapidly and the diesel market remains tight.
The latest forecast shows the EIA expects the average Brent price in the fourth quarter of 2026 to reach $105 per barrel. On the other hand, as Middle Eastern supply gradually recovers, oil prices are expected to fall to $84 in 2027. (yc)
The EIA noted that constrained supply through the Strait of Hormuz and conflicts related to Iran disrupting oil production and exports in the Middle East are the main factors driving up oil price forecasts. Although oil-producing countries such as Saudi Arabia are restoring exports via alternative routes and some Middle Eastern crude supply is gradually recovering, global inventories are still declining rapidly and the diesel market remains tight.
The latest forecast shows the EIA expects the average Brent price in the fourth quarter of 2026 to reach $105 per barrel. On the other hand, as Middle Eastern supply gradually recovers, oil prices are expected to fall to $84 in 2027. (yc)