BofA Securities Sees Brent Crude Averaging $72/bbl in H2 2026
BofA Securities Projects Brent Crude at $72 in Second Half of 2026, Easing to $65 in 2027
BofA Securities has revised its Brent crude oil outlook upward for H2 2026 and expects a gradual price decline into 2027, reflecting easing geopolitical tensions and improving oil flows through the Strait of Hormuz.
What Readers Should Know
- BofA Securities projects Brent crude to average $72/bbl in H2 2026, then ease to $65/bbl in 2027.
- The revised outlook reflects improving geopolitical conditions and a recovery in Strait of Hormuz oil shipments.
- BofA expects the U.S. Federal Reserve to raise interest rates by ~75 basis points in 2026, starting in September.
- India's GDP growth forecast was upgraded to 7% for 2026, up from 6.2% projected in April.
- BofA projects global economic growth of 3.2% in 2026 and 3.5% in 2027.
MONTREAL (Oil Monster): BofA Securities has projected that Brent crude oil will average $72 per barrel during the second half of 2026, before easing to $65 per barrel in 2027. The revised outlook reflects improving geopolitical conditions and a recovery in oil shipments through the Strait of Hormuz — developments that have provided immediate relief to global energy markets.
Oil Prices Fall From Earlier Highs as Hormuz Flows Recover
Crude oil prices have registered sharp declines from their earlier highs, primarily due to easing tensions in West Asia and renewed cargo shipments through the Strait of Hormuz. According to S&P Global, shipping volumes have rebounded significantly following the establishment of a new safe transit corridor along the Omani coast.
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Despite the improved forecast, BofA cautioned that the global economy continues to face risks from tighter U.S. financial conditions.
The firm expects the U.S. Federal Reserve to raise interest rates by around 75 basis points in 2026, starting in September, primarily due to persistent inflation and a resilient labor market.
BofA Raises India and Emerging Asia Growth Forecasts
BofA also upgraded its outlook for the Indian economy, raising its 2026 GDP growth forecast to 7%, up from 6.2% projected in April.
The brokerage lifted its growth forecast for emerging Asia excluding China to 5.9% in 2026, up from a prior estimate of 4.9%, with growth expected at 5.8% in 2027. BofA projects global economic growth of 3.2% in 2026 and 3.5% in 2027.
Frequently Asked Questions — BofA Oil Forecast & Global Outlook
What is BofA Securities' Brent crude oil forecast for H2 2026?
BofA Securities projects Brent crude oil will average $72 per barrel during the second half of 2026.
What does BofA expect for oil prices in 2027?
BofA expects Brent crude to ease to $65 per barrel in 2027, reflecting a gradual normalization as geopolitical conditions improve and Hormuz oil flows recover.
Why have crude oil prices fallen from earlier highs?
Prices have declined primarily due to easing tensions in West Asia and renewed cargo shipments through the Strait of Hormuz, including via a new safe transit corridor along the Omani coast, according to S&P Global.
What interest rate action does BofA expect from the U.S. Federal Reserve in 2026?
BofA expects the Fed to raise interest rates by around 75 basis points in 2026, beginning in September, driven by persistent inflation and a resilient labor market.
What is BofA's GDP growth forecast for India and the global economy in 2026?
BofA raised its India GDP growth forecast to 7% for 2026 (up from 6.2% in April) and projects global economic growth of 3.2% in 2026, rising to 3.5% in 2027.