BOCI: Raises 2026 oil price forecast by 9% to $94/barrel; 2027 forecast raised by 22%

BOCI released a research report stating that as geopolitical tensions in the Middle East escalate, navigation through two important straits in the region has been affected, Saudi Arabia's oil infrastructure is also facing threats, and oil prices have surged to their highest level since May. Given that the current situation is difficult to resolve in the short term, the bank expects oil prices to remain elevated for a longer period and has raised its 2026 oil price forecast by 9% to USD 94/barrel and its 2027 oil price forecast by 22% to USD 90/barrel. The bank maintains a "Neutral" rating on the oil sector and is more favorable toward companies with a higher proportion of upstream business, such as CNOOC and PetroChina.