Supply Fears Drive Wall Street Banks to Boost Oil Price Outlook
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Major financial institutions are revising their crude oil price predictions upward as ongoing tension in the Middle East tightens global energy markets.
ANZ updated its Brent crude forecast by $10, predicting prices will reach roughly $105 per barrel by the end of the year. Strategists at the bank indicated that this increase reflects the continuation of current pressures—including shipping constraints, limited fuel supplies, and disrupted Middle Eastern exports—rather than requiring further geopolitical escalations. ANZ added that months of navigating these market disruptions have significantly depleted global inventory buffers, leaving the market increasingly exposed to future price spikes.
Other major banks share this bullish outlook:
* **UBS** increased its year-end Brent crude target to $110 per barrel (up from $100), citing ongoing conflicts in the Middle East and uncertainty surrounding regional output and trade flows.
* **Goldman Sachs** maintains a year-end target of $90 per barrel for Brent and projects an $80 average for 2027. However, its analysts noted that market risks remain heavily tilted to the upside. Goldman currently estimates a $27 geopolitical risk premium built into oil prices, which is unlikely to drop without a credible, long-term diplomatic resolution.
Driven by supply concerns, oil prices are set to record their fourth consecutive monthly gain. Market anxiety remains high following fresh Houthi actions targeting Saudi Arabia and anticipation over potential direct strikes between Israel, the U.S., and Iran.
