Oil: Supply response tempers geopolitical spike – OCBC
OCBC’s Sim Moh Siong highlights that crude briefly surged toward USD120/bbl on Iranian attacks before easing as US officials signalled supply support and Israel suggested faster de-escalation. The bank has lifted its Brent outlook, expecting prices to hold near USD100/bbl through mid-year before gradually easing toward USD70/bbl by early 2027, with prolonged shipping disruptions posing upside supply risks.
Brent outlook raised on supply risks
"Crude prices briefly jumped toward USD120/bbl after a series of Iranian attacks on regional energy infrastructure."
"We lifted our Brent outlook, expecting prices to hold around USD100/bbl through mid-year before gradually easing toward USD70/bbl by early 2027."
"Prolonged shipping paralysis is forcing Gulf producers into output shut-ins, heightening the risk that temporary disruptions evolve into more persistent supply losses."
"Even with mitigation measures, up to 10mb/d of available offsets fall short of covering a sustained Strait closure."
(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)
Nothing in this material constitutes investment advice, personal recommendation, investment research, an offer, or a solicitation to buy or sell any financial instrument. The content has been prepared without consideration of your individual investment objectives, financial situation, or needs, and should not be treated as such.
Past performance is not a reliable indicator of future performance and/or results. Forward-looking scenarios or forecasts are not a guarantee of future performance. Actual results may differ materially from those anticipated.
Mitrade makes no representation or warranty as to the accuracy or completeness of the information provided and accepts no liability for any loss arising from reliance on such information.
Recommended Articles
