EIA Ups Oil Price Forecasts Amid Ongoing Middle East Conflict

The U.S. Energy Information Administration (EIA) has revised its forecast for oil prices in 2026 and 2027, citing declining global stockpiles due to reduced Middle Eastern supply.

Brent crude oil is now expected to average $91 per barrel this year, a nearly 5% increase from the previous forecast. U.S. West Texas Intermediate (WTI) crude prices are projected to average $84.65 per barrel this year, also up nearly 5% from the prior estimate.

The EIA attributes the decline in global stockpiles to lost Middle Eastern supply, particularly due to the ongoing Iran conflict. The agency expects oil output from the region to rise gradually in coming months, but notes that some constraints will persist through the end of 2026 and into 2027.