UBS raises December oil price forecasts by $5/bbl, sees Brent at $100 and WTI at $96
UBS raised its December oil price forecasts by $5/bbl and expects Brent at $100/bbl and WTI at $96/bbl by year-end, saying drawdowns in emergency inventories could leave the market more vulnerable. The bank says strategic reserve releases should help contain near-term spikes, but if geopolitical tensions stay elevated or new supply outages emerge, prices could become more sensitive to supply surprises. UBS also cites potential hurricane-linked flooding and power outages affecting refining operations.
Oct. 7 — UBS raised its December oil price forecasts by $5/bbl, saying it now sees Brent at $100/bbl and WTI at $96/bbl by year-end. The bank said drawing down emergency inventories could leave the market more vulnerable to future supply disruptions and potentially lead to larger price swings. UBS added that releasing strategic oil reserves should help contain near-term price spikes by offsetting declines in commercial inventories.
It said oil prices could become increasingly sensitive to adverse supply surprises if geopolitical tensions remain elevated or new supply outages emerge. S. fuel prices higher.