Oil prices outlook flagged: UBS says Brent could range $80-$135/bbl
Reuters cites UBS as saying negotiations after the US midterms could normalize regional oil flows by H1 2027, with Brent seen in an $80-$135 per barrel range and risks toward $150.
7% Healthcare stocks lead gains, boosted by 8% jump in Genmab shares Wall St futures higher Welcome to the home for real-time coverage of markets brought to you reporters. You can share your thoughts with us at Oil Prices Can Rise Even With A New Mou Oil prices remain under the spotlight as markets assess the impact a prolonged shock could have on growth and inflation. Meanwhile, UBS argues that even if a deal is struck after the US midterm elections and before year-end, a decline in Brent crude futures cannot be taken for granted.
“Under our base case, we assume that negotiations ultimately move back towards a similar arrangement to the June MoU by the end of the year, allowing for a gradual normalisation of regional oil flows through first half 2027,” UBS says in a research note. The normalisation path is likely to be uneven, it adds, as unresolved questions over Hormuz controls, sanctions, nuclear concessions and other issues leave considerable volatility in both physical markets and pricing. Bottom line, while UBS's base case assumes a gradual recovery in flows and easing tensions, it also sees Brent trading in an $80 to $135 per barrel range across scenarios, compared with around $98 currently.
However, a slower return to a diplomatic framework, renewed disruptions to Hormuz traffic, tighter sanctions or broader regional escalation could push prices towards the upper end of their range and potentially to $150 per barrel. (Stefano Rebaudo) *** Earlier On Live Markets: What The Ai Capex Cycle Might Mean For European Growth Click Here IGNORE POLITICS AND BUY THE DIP IN SPAIN’S BONOs CLICK HERE A Health Boost For The Stoxx Click Here Europe Before The Bell: Ready For A Jump Click Here Spain To France: Hold My Cerveza Click Here