Oil Prices Expected to Stabilize Around $70 by End of 2026

The Energy Information Administration (EIA) recently released its Short Term Energy Outlook, forecasting that oil prices will stabilize around $70 per barrel by the end of 2026. This prediction comes amidst the ongoing conflict in Iran and the resulting disruption to global energy markets.

Oil prices surged above $115 a barrel earlier this month due to concerns over the Strait of Hormuz, but have since plummeted by about 25% to around $85 per barrel. The EIA notes that it may take some time for oil prices to return to their pre-war level of $67.

Despite the sharp decline, Brent is expected to slide below $80 per barrel in the third quarter and ease further to around $70 by year-end. However, this forecast depends on the duration of the Iranian conflict and the resulting outages.