Oil Prices Lock in Above $80 as Middle East Risks Persist
Oil prices are expected to remain above $80 per barrel through 2026 due to ongoing supply risks from Middle East conflicts and shipping disruptions. Analysts surveyed by Reuters predict Brent crude will average around $85 a barrel in 2026, while U.S. crude is forecasted at approximately $80.
The Iran-U.S. conflict has sharply reduced vessel traffic through the Strait of Hormuz, supporting higher oil prices. The International Energy Agency expects global demand to fall by 1.6 million barrels per day in 2026, while OPEC forecasts growth of 580,000 barrels per day.
China's weak demand and lower crude oil imports are also limiting the upside for global oil prices. Analysts expect the global oil market to remain in deficit in 2026, with estimates ranging from 1.65 million to 3.5 million barrels per day.