Major Banks Raise Brent Oil Price Forecasts Amid Gulf Disruptions
- Commerzbank increased its year-end Brent forecast to $85 per barrel from $75.
- Goldman Sachs raised its December forecasts for Brent and WTI by $5, predicting Brent at $85 and WTI at $80.
- HSBC’s forecasts for Brent are now $90 in 2026 and $85 in 2027, citing ongoing disruptions.
- Bank of America set its second-half forecast for Brent at $83 per barrel, with potential risks pushing it to $150.
The recent adjustments reflect ongoing shipping disruptions in the Middle East, particularly affecting the Strait of Hormuz, through which around 20% of global oil passes. Major banks are adapting to a “new normal” where oil supply remains persistently constrained due to geopolitical tensions.
As oil prices surpassed $100 per barrel for the first time since mid-May, analysts warn that further disruptions could lead prices even higher. This trend underscores the significant impact of geopolitical factors on global energy markets. (Source)
