Visible global oil inventories have fallen by more than 500 million barrels since February, prompting a revision of price targets for the oil market. UBS increased its forecast for Brent crude to $110 a barrel for the end of 2026, up from a previous estimate of $100, citing the impact of freight and insurance costs following attacks on ships in the Strait of Hormuz.
This adjustment is the second time the bank has raised its outlook for the benchmark this month, as crude loadings in the Gulf remain below prewar levels. UBS also lifted its targets for early 2027, forecasting $95 per barrel for March and $90 for June. Separately, Brent crude recently traded above $100 a barrel while WTI approached $102 on Friday.