Standard Chartered raises oil price forecasts through 2027

Standard Chartered specialists have raised their forecasts for oil prices, predicting that costs will remain elevated through at least the end of 2027. The bank increased its average price projections for Brent crude from $85.5 to $92 per barrel and for West Texas Intermediate (WTI) from $77.5 to $89.5 per barrel.

The bank attributes this sustained high pricing to geopolitical instability in the Persian Gulf. Conflict involving regional energy infrastructure and the intermittent, selective closure of the Strait of Hormuz have disrupted global hydrocarbon flows. Additionally, skirmishes between Saudi Arabia and Ansar Allah have impacted Saudi ports and the East-West pipeline, while control over the Bab el-Mandeb Strait has also been contested.

Standard Chartered notes that even if regional tensions were to settle, the process would be gradual and face numerous obstacles, including the time required to repair damaged energy facilities. The bank expects a persistent risk premium to remain embedded in prices due to the potential for episodic escalations.