Key facts
- UBS now expects Brent crude to trade at $110 a barrel by the end of 2026.
- Middle Eastern crude loadings remain below prewar levels.
- Global inventories have fallen sharply.
- Very large crude carrier rates from the Middle East to China have climbed to $30-40 a barrel.
- Brent crude traded at $115.30 a barrel and WTI at $101.90 on Wednesday.
UBS has raised its Brent crude oil price forecast for the second time this month, now expecting it to trade at $110 a barrel by the end of 2026, up from $100. The Swiss bank also increased its 2027 price curve by $5 a barrel at each point. UBS cited elevated uncertainty from the Middle East conflict and below-prewar production levels in the Gulf as reasons for the forecast. Global inventories have fallen sharply, and an undersupplied market is expected to sustain prices. Brent crude traded at $115.30 a barrel and WTI at $101.90 on Wednesday amid claims of a missile strike on Saudi Aramco's Ras Tanura refinery, though Saudi authorities have not confirmed a direct hit.