Oil Prices Set for Extended Stay at New Highs Amid Persistent Disruptions
Crude oil prices have reached new highs and are expected to remain elevated for an extended period. The US-Iran war has disrupted West Asian crude oil production, leading to a decline in global supplies. According to S&P Global Energy, Middle Eastern crude oil and condensate exports are now expected to average 10-16 million b/d through 2027, down from 20 million b/d before the war.
The analysts expect crude oil prices to stay within the $80-$100/barrel range through 2027, with Dated Brent averaging around $90 or higher for the balance of 2026 and $86 in 2027. This is a $5 increase from their earlier outlook.
Jim Burkhard, Vice President and Global Head of Crude Oil Research at S&P Global Energy, said that crude markets remain caught between constrained supply and limited available refining capacity. Lower Middle Eastern production supports prices, while refining constraints limit crude demand.