Global crude oil prices are forecasted to linger around the low $100s per barrel due to ongoing supply disruptions and logistical issues in West Asia. JPMorgan Chase & Co. predicts that even if the Strait of Hormuz operations normalize, oil prices will likely stay in this range for the majority of the year. The report highlights that disruptions in shipping, refineries, and tanker availability will continue to impact global energy supply chains, hindering a quick price correction.
The investment bank projects that Brent crude might average approximately $97 per barrel in 2026, indicating a prolonged period of tight supply conditions in energy markets. The report emphasizes that merely reopening the Strait of Hormuz will not immediately stabilize the market, as logistical hurdles in the broader oil transport network are expected to persist for months.
Recent developments saw oil prices rising, with Brent crude surpassing $105 per barrel, up by about 1%, following criticism from US President Donald Trump towards Iran’s response to a peace proposal from Washington. This raised concerns over regional stability and its potential impact on global oil flows. Similarly, West Texas Intermediate (WTI) crude neared the $100-per-barrel threshold, marking a nearly 1% increase.
Furthermore, reports indicated a decline in crude output by OPEC, dropping by 830,000 barrels per day in April to 20.04 million barrels per day. Additionally, the domestic equity benchmarks Sensex and Nifty faced significant pressure, experiencing a decline of around 1%.
