EIA Boosts Oil Price Forecasts Amid Ongoing Middle Eastern Disruptions

The US Energy Information Administration (EIA) has increased its forecasts for oil prices in 2026 and 2027 due to ongoing disruptions in Middle Eastern supply. According to the EIA's September Short-Term Energy Outlook, Brent crude oil averaged $91 a barrel in August, up from $84 in July.

Global crude oil prices rose in August as total exports out of the Middle East remained constrained, leading to more oil production shut-ins in the region. The agency attributed these disruptions partly to restrictions on Iranian oil exports and attacks affecting oil shipments through regional transit routes.

The EIA estimates that global oil inventories have fallen by around 400 million barrels this year, and expect them to continue falling through the end of 2026. This is expected to keep prices near the August average in the coming months.