Barclays on Friday raised its 2026
Brent crude forecast to $85 per barrel, citing ongoing supply
disruptions linked to the Iran war that have sharply reduced oil
flows through the Strait of Hormuz.
The bank said oil flows through the Strait of Hormuz route
have fallen to a trickle and production shut-ins in Gulf
countries have climbed to more than 10 million barrels per day.
The revised forecast assumes the situation in the Strait of
Hormuz normalizes within two to three weeks, Barclays said in a
research note.
“If however, the market internalizes that it might take four
to six weeks for that, we could see 2026 Brent reprice to
$100/b,” the bank added.
Oil prices have risen despite efforts by the International
Energy Agency to release strategic reserves, as uncertainty
around the duration of the conflict continues to support
markets.
Brent futures on Friday settled at $103.14 a barrel,
up $2.68, or 2.67 per cent.
Barclays said the path of least resistance for oil prices
remains higher until there is a inflection point in the
conflict.