Bank of America raises Brent oil forecast to $95 on Middle East tensions

Bank of America has raised its forecast for Brent crude oil prices to $95 per barrel from a previous estimate of $83, citing ongoing tensions in the Middle East as a key factor. The revised outlook reflects concerns about supply disruptions in critical areas such as the Strait of Hormuz, a vital passage for global oil shipments. This adjustment comes amid a backdrop of Brent crude recently above $100 per barrel, suggesting that the bank anticipates continued market tightness. The updated forecast aligns with previous expectations from the Energy Information Administration, which projected elevated prices during periods of regional conflict. Key Takeaways Bank of America’s revised oil price forecast suggests a view that Middle East tensions could sustain higher oil prices. Market pricing appears to reflect uncertainty over supply disruptions, consistent with scenarios where oil remains above historical averages. Current Brent oil levels above $100 per barrel indicate the market’s concern over persistent geopolitical risks. What to Watch Watch for potential developments in Middle East geopolitics, which could affect oil supply routes like the Strait of Hormuz. Any announcements from ...