Brent oil price forecasts for the next two months
Brent oil prices are set to trade above $95 a barrel over the next two months as the Iran war disrupts supplies, before falling to around $70 by the end of the year, the Energy Information Administration said in a monthly report.
Oil shipments have been largely blocked from using the Strait of Hormuz, a critical chokepoint through which a fifth of global oil flows every day, and this will cause Middle East oil output to fall further in coming weeks, the EIA said in its Short-Term Energy Outlook, News.Az reports, citing Reuters.
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Monday, joining other Gulf producers including Iraq and Kuwait in reducing production amid the constraints. Those production shut-ins will gradually ease as transit resumes, the EIA said, adding that once oil flows are reestablished through the Strait, global oil production will continue to outpace demand.
Brent crude futures have risen around 21% so far this month, according to LSEG data.
The EIA raised its price forecast for Brent by 37% from the prior month to $79 a barrel in 2026.
Brent should fall below $80 a barrel in the third quarter of this year, it said.
By Faig Mahmudov
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