Crude Oil Price Update: Will crude oil prices surge again despite US-Iran deal? Can Brent Crude reach $90?
Significant volatility has been observed in the global crude oil market following the US-Iran deal. Amid reports of oil and gas supplies normalizing via the Strait of Hormuz, crude oil prices saw a sudden drop, with Brent Crude slipping to around $80 per barrel.
On Monday, crude oil prices fell by nearly 5%, closing at $80.75 per barrel. However, a slight recovery was seen on Tuesday, with prices trading around $82 per barrel.
Crude oil prices could surge again
Brokerage firm Emkay Global has warned that although geopolitical tensions have currently eased, an imbalance between supply and demand could persist. According to the report, if pent-up demand (especially from China) rebounds sharply, crude oil prices could surge again in the coming weeks, potentially reaching or exceeding $90 per barrel.
It could take even months for supplies to return to complete normalcy
The firm states that it could take weeks or even months for supplies via the Strait of Hormuz to return to complete normalcy, ensuring that market uncertainty persists. Emkay Global has maintained its average Brent crude price forecast at $90 per barrel for FY2027. According to the report, prices could rise to $95 in the first half of the year. They are expected to hover around $85 in the second half, with a possibility of dropping to $70 per barrel by the end of the fiscal year.
Oil prices likely to remain high
Regarding crude oil price targets, Emkay Global said that there have been no significant changes to its forecasts; oil prices are likely to remain high in the first half of FY2027 (averaging $95 per barrel), while the average for the second half is projected at $85 per barrel. The brokerage stated that it is maintaining its Brent forecast at $90 per barrel for FY2027.
However, while presenting its estimates, the brokerage firm Emkay Global also offered a note of relief, stating that a sustained decline in prices should occur after the first half of 2027, potentially bringing oil prices down to $70 per barrel by the end of the fiscal year.