Analysts anticipate global oil prices will remain under significant pressure throughout 2026. They primarily attribute this forecast to an expected surge in supply. Supply is projected to outstrip modest growth in demand. Nevertheless, potential geopolitical risks could prevent more substantial price drops.
Forecast Details
A recent Reuters poll provides these projections. The survey, released on Friday, surveyed 35 economists and analysts. It specifically forecasts Brent crude will average $62.23 per barrel in 2026. This prediction reflects current market expectations.
Price Revision
This latest average represents a downward revision. The previous forecast, made in October, projected $63.15 per barrel. Analysts have adjusted their outlook based on evolving market dynamics.
Market Dynamics
Swelling oil supplies primarily drive this anticipated pressure. Global production capacity appears set to expand. Consequently, this expansion will likely exceed the expected increase in demand. Demand growth itself remains modest.
Geopolitical Considerations
Despite the bearish supply-demand outlook, geopolitical risks introduce an element of uncertainty. These risks hold the potential to cap deeper losses in oil prices. For example, disruptions to supply from conflict zones could tighten the market. Such events would counteract the general trend of oversupply.
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