HSBC Raises 2026 Oil Price Projection to US$80 per Barrel

HSBC has raised its projection for the average price of Brent crude oil for 2026 to US$80 per barrel, up US$15 from its previous estimate. The bank also raised its West Texas Intermediate (WTI) price forecast by US$14 to US$76 per barrel. This projection increase comes after oil prices rose sharply following the conflict involving Iran.

Since the war broke out last week, Brent prices have risen more than 27%, while WTI has surged about 33%. Both oil benchmarks even broke through US$119 per barrel on Monday, their highest levels since mid-2022.

The price spike came after the conflict triggered the closure of the Strait of Hormuz, a vital route through which about a fifth of the world's oil supply passes. The closure of the route forced a number of major producers in OPEC, such as Saudi Arabia, Iraq, Kuwait and the United Arab Emirates, to reduce oil shipments because shipping traffic in the region came to a standstill.

However, oil prices were corrected after US President Donald Trump stated that the conflict in the Middle East could potentially end soon. The statement eased market concerns about prolonged energy supply disruptions.

In trading on Tuesday at around 13:00 GMT, Brent prices were recorded as having fallen 6.7% to US$ 92.06 per barrel, while WTI weakened 5.7% to US$89.21 per barrel. Several global financial institutions have also updated their oil price projections.UBS estimates Brent Prices in 2026 wil be around US$72 per barrel. Meanwhile, Barclays estimates Brent pries at aroumd US$65 per barrel. HSBC's higher projection reflects concerns that geopolitical tensions in the Middle East could continue to impact global energy supplies in the medium term

Back