EIA Boosts Oil Price Forecasts Amid Ongoing Middle East Conflict
The U.S. Energy Information Administration (EIA) has raised its oil price forecasts for 2026 and 2027 due to rapidly falling global stockpiles caused by lost Middle Eastern supply from the ongoing Iran conflict.
The EIA now expects Brent crude oil to average around $91 per barrel in the spot market this year, a nearly 5% increase from its previous 2026 forecast. U.S. West Texas Intermediate crude prices are projected to average $84.65 per barrel this year, also up nearly 5% from the prior estimate.
Global oil inventories have declined by 400 million barrels so far in 2026 and will continue falling through year-end, according to the EIA. Middle East crude oil production shut-ins increased to 6.7 million barrels per day in August from 5 million barrels per day in July.