Oil price forecast for $80
Restad Energy expects the average price of Brent crude to decline to $90 per barrel by the end of 2026, then to $80 in 2027, due to ongoing market pressures from rising shipping and insurance costs, inventory shortages, and increased security challenges around the Strait of Hormuz, which diminish the impact of production recovery on prices. Although Middle Eastern countries are improving their production, shipping disruptions and vessel restrictions are delaying oil deliveries to refineries, prompting buyers to rely on other grades, thereby widening the price gap with West Texas Intermediate (WTI). Countries such as Saudi Arabia and the UAE are seeking to establish alternative export routes as security measures for supply, while investments in the oil and gas sector continue to grow significantly despite security and technical challenges. Market pressure is expected to persist through 2027.
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