The US Energy Information Administration (EIA) raised its oil price forecasts for this year and next, as global inventories continue to decline rapidly and diesel supplies remain tight amid the ongoing war between the United States and Iran.
In its monthly Short-Term Energy Outlook (STEO) released on Oct. 6, the EIA said it expects the global benchmark Brent crude to average around $98 per barrel in 2026, up 8% from its previous forecast.
The agency expects Brent prices to reach around $105 per barrel in the fourth quarter of this year, $14 higher than its previous estimate. It also expects US retail diesel prices to remain above $6 per gallon in October.
The EIA expects Middle East oil production and exports to gradually recover as traffic through the Strait of Hormuz improves and producers shift to alternative export routes. However, it raised its forecast for Brent prices in 2027 to an average of $84 per barrel, $10 above its previous estimate.
As alternative routes expand, the EIA expects curtailed production in the Middle East to decline from 4.5 million barrels per day (bpd) in the fourth quarter of 2026 to 2.7 million bpd in the first quarter of 2027.
The US Energy Information Administration (EIA) raised its oil price forecasts for this year and next, as global inventories continue to decline rapidly and diesel supplies remain tight amid the ongoing war between the United States and Iran.
In its monthly Short-Term Energy Outlook (STEO) released on Oct. 6, the EIA said it expects the global benchmark Brent crude to average around $98 per barrel in 2026, up 8% from its previous forecast.
The agency expects Brent prices to reach around $105 per barrel in the fourth quarter of this year, $14 higher than its previous estimate. It also expects US retail diesel prices to remain above $6 per gallon in October.
The EIA expects Middle East oil production and exports to gradually recover as traffic through the Strait of Hormuz improves and producers shift to alternative export routes. However, it raised its forecast for Brent prices in 2027 to an average of $84 per barrel, $10 above its previous estimate.
As alternative routes expand, the EIA expects curtailed production in the Middle East to decline from 4.5 million barrels per day (bpd) in the fourth quarter of 2026 to 2.7 million bpd in the first quarter of 2027.
