EIA sees Brent oil prices remaining above $95 for two months
EIA expects Brent oil prices to stay above $95 per barrel for two months as conflict continues. Prices are forecast to drop below $80 by the third quarter of 2026.
The Energy Information Administration (EIA) reported on Tuesday that Brent Crude Oil prices are projected to remain above $95 per barrel over the next two months. This forecast, part of the agency's monthly short-term energy outlook, is primarily attributed to the ongoing conflict in the Middle East and its impact on global energy markets.
According to the EIA, while prices are elevated in the near term, they are expected to decline later in the forecast period. Brent crude futures are projected to fall below $80 per barrel by the third quarter of 2026, eventually reaching approximately $70 per barrel by the end of that year. A significant factor in the current supply tightness is the disruption at the Strait of Hormuz, a critical maritime chokepoint through which one-fifth of the world's daily oil supply flows.
The effective closure of the critical chokepoint, the Strait of Hormuz, through which a fifth of global oil flows every day, will cause Mideast oil output to fall further in the coming weeks.
The EIA noted that while these production shut-ins will impact the market in the short term, they are expected to ease as regional transit resumes and supply chains stabilize.
