Brent Oil: Geopolitics delay supply recovery – OCBC
OCBC strategists Sim Moh Siong and Christopher Wong raise their end-2026 Brent forecast to USD 80/bbl from USD 75/bbl as Middle East supply disruptions prove more prolonged. They note falling inventories, rising transport costs and emerging diesel shortages as key constraints.
OCBC analysts have revised their Brent oil forecast, projecting it to reach $80 per barrel by the end of 2026, up from $75 previously. The forecast increase is attributed to ongoing disruptions in Middle East oil supply, mounting transport costs, and emerging diesel shortages. The price of Brent crude crossed the $90 mark as geopolitical tensions between the US and Iran intensified, with new concerns arising over shipping through the Strait of Hormuz.
Despite the market's adjustment to supply disruptions through inventory depletion, the primary obstacle now lies in diesel availability.
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