ANZ Group Holdings Ltd. has revised its oil price forecast upward, citing heightened tensions in the Middle East. The bank now anticipates Brent crude to close the year at $105 per barrel, a significant increase from its earlier estimate of $95. This adjustment comes as oil-market balances grow more fragile following the escalation of the Iran war.
Strategists Daniel Hynes and Soni Kumari highlighted in a Friday note that any further flare-ups, particularly after the US midterm elections, could drive prices even higher. The current market conditions suggest greater volatility and tighter supply, factors that are influencing the bank's revised outlook.
The forecast assumes no additional escalation in Middle East hostilities. However, the strategists caution that the situation remains fluid, and any new developments could lead to further adjustments in their projections.