UBS Raises Oil Price Forecast for September

Deep News05-21 20:30

UBS Group increased its September oil price forecast by $10 per barrel on Thursday, projecting Brent crude at $105 per barrel and West Texas Intermediate (WTI) crude at $97 per barrel. The bank also raised its December and March price expectations by $5 per barrel each. UBS stated that short-term oil prices still face upward risks and reiterated that if supply disruptions persist, prices could surge sharply in the near term, potentially triggering a significant demand contraction. Under such a scenario, Brent crude prices are likely to exceed $150 per barrel. Panic over market shortages could fuel hoarding behavior, further intensifying price volatility. Iran has taken measures to strengthen its control over the key Strait of Hormuz, which is currently largely non-operational. UBS noted that global crude production cuts in March and April could total 65 million barrels, with the reduction potentially surpassing 100 million barrels by the end of May. As of 12:07 GMT, Brent crude futures were trading around $106.99 per barrel, while WTI crude futures were at $100.58 per barrel.

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