Brent Crude Prices Expected to Hit $85 as Global Oil Inventories Tighten

The U.S. Energy Information Administration (EIA) released its latest Short-Term Energy Outlook, forecasting Brent crude oil prices to reach an average of $85 per barrel in the third quarter due to continued decreases in global oil inventories and transit constraints through the Strait of Hormuz.

EIA expects Middle East crude oil production to remain shut-in, with some 0.6 million barrels per day remaining offline through the end of 2027. This will keep crude oil prices near current levels, which have been influenced by the threat of blockade of the Bab el-Mandeb strait.

The agency forecasts U.S. natural gas inventories to increase to 3,985 billion cubic feet in October, the most gas in inventory prior to the winter heating season since 2016, due to increased production and reduced feedgas demand from liquefied natural gas facilities undergoing maintenance.