EIA Raises Oil Price Forecasts Amid Ongoing Supply Disruptions
The U.S. Energy Information Administration (EIA) has significantly raised its oil price forecasts for the next two years.
In its latest Short-Term Energy Outlook, released on September 9, the EIA projects that the average spot price of Brent crude will be $91 per barrel in 2026 and $74 per barrel in 2027, up from previous forecasts by $4 and $5 respectively.
The main driver behind this upward revision is the expectation of persistent disruptions to Middle Eastern oil supplies due to transportation constraints in strategic waterways.
With average production cuts in the Middle East reaching 6.7 million barrels per day in August, up from 5.0 million barrels per day in July, the EIA anticipates that some capacity will remain offline through the fourth quarter, affecting global inventories which are already declining rapidly.