S&P Significantly Raises Oil Price Outlook, Long-Term High Prices Needed to Improve Global Supply-Demand Balance

BlockBeats News, April 30th, Standard & Poor's announced that it has raised its price forecasts for the remaining time of 2026 for WTI and Brent crude oil by $15 per barrel each, and by $5 per barrel for 2027. The latest expectations show a target price of $95 per barrel for WTI crude oil in 2026 and $100 per barrel for Brent crude oil.

Standard & Poor's attributed this upward revision to two main factors: the continued exacerbation of oil supply disruptions and the geopolitical risk premium from the US-Iran nuclear deal deadlock.

Regarding the outlook for the Strait of Hormuz, Standard & Poor's expressed caution—stating that even if the strait fully reopens, oil flow may only gradually recover, and any reopening scenario would remain fragile and vulnerable to intermittent disruptions.

Standard & Poor's also pointed out that current oil prices need to rise further or remain at elevated levels for an extended period to effectively dampen demand and improve the global supply-demand balance. Price assumptions for 2028 and beyond are temporarily unchanged.