Mizuho Sees Oil Market Recovery by Mid-2026, Picks Top Stocks

Despite near-term headwinds from oil oversupply concerns and elevated natural gas storage levels, Mizuho anticipates a market recovery in the second half of 2026.

The firm expects oil markets to bottom in early 2026, driven by limited non-OPEC supply growth and OPEC+ production restraint. This will lead to a recovery toward mid-cycle pricing by the latter half of the year.

In natural gas, demand growth from LNG, power generation, and infrastructure expansion is projected to outpace supply, creating a structurally undersupplied market despite higher production levels.