SEATTLE (Oil Monster): Global energy consultancy Wood Mackenzie (WoodMac) has revised its Brent crude oil price outlook for 2027, citing improving market conditions following the recent pact between the U.S. and Iran that paves the way for the gradual reopening of the Strait of Hormuz.
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According to WoodMac, Brent crude prices are forecast to average $78 per barrel in 2027, with prices potentially easing to $70 per barrel by the fourth quarter of the year, subject to normalization of shipping flows by August. It must be noted that the heightened geopolitical tensions had pushed Brent prices to an average of $92 per barrel during the initial half of the current year.
The consultancy cites significant improvement in investor sentiment in recent weeks. As per the latest data, the number of vessels transiting the Strait of Hormuz reached 35 on June 18, significantly higher than the low teens recorded during the peak of the disruption.
WoodMac estimates that around 70% of the more than 11 million barrels per day of disrupted crude supply could return within three months of the strait’s reopening. Furthermore, it expects restoration of 90% of supplies within next six months. However, it warns that market volatility is likely to persist.
