Banks upgrade oil price forecasts amid Hormuz tensions
International banks such as Goldman Sachs, Bank of America, and Commerzbank have raised their expectations for Brent crude oil prices this week, due to ongoing shipping disruptions in the Middle East that have led to a supply shortage and pushed prices to their highest levels in weeks. Commerzbank has increased its forecast for the end of 2026 to $85 per barrel, while Goldman Sachs attributes the expected rise to continued shipping disruptions through next year, with the possibility of Brent reaching over $120 if Gulf production continues to decline, or dropping to between $60 and $70 if production is increased above pre-war levels. Other banks have also projected oil prices to reach between $85 and $90 per barrel by 2026, with risks of rising to $120 or $150 if infrastructure damages worsen or disruptions persist. Experts anticipate that the market will not re-balance until mid-2027, amid ongoing supply shortages and escalating geopolitical risks. Prices surged above $100 during the week for the first time since mid-May.
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