Wall Street Banks Raise Oil Price Forecasts as Supply Fears Deepen

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Wall Street Banks Raise Oil Price Forecasts as Supply Fears Deepen
PrimeXBT Editorial Team
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ANZ raised its year-end Brent forecast by $10 a barrel to about $105, and UBS lifted its own target to $110. Goldman Sachs holds a lower $90 call but says risks to its forecast skew to the upside.

ANZ said on Friday that Brent prices are set to end the year at about $105 per barrel. The bank assumes Middle East oil exports, shipping availability and fuel supplies stay constrained through December.

In a note carried by Bloomberg, ANZ strategists wrote: "The forecast does not require another geopolitical shock." The bank added that any escalation in the Middle East would send prices even higher.

Brent crude forecasts rose elsewhere on Wall Street as well. Earlier this week, UBS raised its Brent forecast to $110 a barrel at the end of 2026, up from $100.

Goldman Sachs is more cautious. It sees Brent at $90 per barrel at the end of this year and an annual average of $80 in 2027. Goldman also estimates the baked-in risk premium at about $27 per barrel for Brent.

Oil is heading for a fourth consecutive monthly gain on Friday, as the Houthis escalate attacks on Saudi Arabia and the market braces for a potential new round of U.S.-Israel strikes on Iran.

Source: Investing.com

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