Bank of America has increased its price forecast for Brent crude oil to $95 per barrel. The previous estimate stood at $83 per barrel. Analysts attribute this revision to persistent geopolitical tensions in the Middle East.
The bank highlights risks of supply disruptions in the Strait of Hormuz, which serves as a critical route for global oil shipments. This update follows recent market activity where Brent crude prices climbed above $100 per barrel, indicating expected market tightness.
The revised outlook is consistent with projections from the Energy Information Administration regarding price levels during regional conflicts. Future market sentiment may be influenced by potential production adjustments from OPEC or the International Energy Agency.
Market predictions for a new all-time high in crude oil prices currently show a 0.5% probability by September 30 and an 11% probability by December 31.
