S&P Global Raises Ratings on WTI and Brent Crude Oil Price Expectations

Standard & Poor's Global Ratings has raised its price expectations for the remaining time in 2026 for West Texas Intermediate and Brent crude oil by $15 per barrel each, to $75 and $80 respectively. Standard & Poor's stated in a report that this adjustment reflects deeper and more prolonged interruptions in oil supply, as well as an increase in geopolitical risk premium as negotiations between the US and Iran remain in a stalemate. "The scale of supply losses continues to expand and significantly exceeds previous estimates." Analyst Victoria Godunova stated that, according to data from Standard & Poor's Global Energy, the market has accumulated losses of 1.1 billion barrels since March, based on estimates of shut-in and stranded crude and condensate. Prices need to rise further, or remain high for a long period of time, to suppress demand and improve market balance. Price expectations for 2028 and beyond remain unchanged.