OCBC projects Brent crude reaching USD100/bbl by late 2026 as supply chain bottlenecks and geopolitical instability erode global oil buffers, widening the spread against WTI.
OCBC strategists have revised their Brent crude forecasts upward, targeting USD100/bbl by the end of 2026 and USD85/bbl by the end of 2027. This bullish outlook is driven by the erosion of market buffers caused by prolonged Middle East instability and the resulting depletion of global inventories.
OCBC projects Brent to reach USD100/bbl by end-2026 and USD85/bbl by end-2027.
The outlook for WTI is influenced by structural transportation bottlenecks and elevated freight costs, which are expected to widen the spread between Brent and WTI. While Brent is projected to see relative strength, the overall environment remains supportive of higher oil prices due to these logistical constraints.
The spread is expected to widen due to transportation bottlenecks and higher freight costs impacting global logistics.
OCBC strategists have upgraded their Brent crude oil price forecasts, targeting USD100 per barrel by the end of 2026 and USD85 by 2027. The revision reflects persistent Middle East geopolitical disruptions, depleted global inventories, and rising freight costs that threaten to keep energy prices elevated for the long term.
The bank cites persistent Middle East disruptions, depleted global inventories, and increased transportation costs as primary drivers for a higher-for-longer price outlook.