Middle East Conflict Eases, Oil Prices Expected to Fall

Economists at the Fortune Global 500 Summit are optimistic about a resolution to the Middle East conflict, which they believe will lead to lower crude oil prices and ease global inflation.

Nomura Securities' China chief economist Lu Ting expects the war to come to an end and oil prices to return to normal. He notes that international oil prices were severely impacted by the Russia-Ukraine conflict in 2022, with prices rising to around USD108 per barrel.

Lu believes that strategic oil reserves released by several countries and increased output from producers have cushioned the supply shock, making the economic impact less severe than expected. He expects next year to be a good year for the global economy despite current challenges.

Goldman Sachs' China chief economist Shan Hui also expects US inflation to ease and the Fed to cut interest rates in 2027 as oil prices drop. She points out that while global crude oil reserves remain high, they have dropped noticeably after months of conflict.