Bank of America raises its forecast for Brent oil in the second half of this year to 95 dollars per barrel, from the previous 83 dollars, as the bank expects geopolitical tensions to persist through the end of the year. Reuters reports this.
Disruptions to transport through the Strait of Hormuz are deemed to have decreased, but damaged infrastructure and continued tensions make a swift recovery unlikely.
The bank expects an average Brent price of around 80 dollars per barrel in 2027, but warns that the price could rise well above 150 dollars if the disruptions continue into spring 2027 or the damage to oil infrastructure worsens.
