Barclays holds brent crude forecast at $100 amid Hormuz shutdown

Baghdad (IraqiNews.com) -Barclays has maintained its forecast for the average price of Brent crude oil at $100 per barrel throughout 2026, noting that current market risks lean heavily toward pushing prices even higher due to ongoing tensions in the region.

In a research note reported by Reuters, the bank highlighted that the continuous closure of the Strait of Hormuz has effectively removed approximately 14 million barrels per day (bpd) of oil from global markets. This massive supply disruption encompasses crucial exports from Iraq, Saudi Arabia, the United Arab Emirates, and Kuwait, significantly tightening global supplies and underpinning high energy valuations.

Barclays pointed out that roughly 20% of global energy supplies passed through the strategic strait prior to the escalation of the conflict. Present oil inventory indicators reflect a severe structural deficit ranging between 6 and 8 million bpd, a crunch that has driven U.S. crude inventories close to their lowest levels recorded since 2020.

Furthermore, the bank pointed out that a full reopening of the Strait of Hormuz, even if achieved immediately, would not offer a quick fix for the supply deficit. Because global inventories have been drawn down so deeply, they are projected to remain at critically low levels compared to previous years for a prolonged period.

The post Barclays holds brent crude forecast at $100 amid Hormuz shutdown appeared first on Iraqi News.

المصدر: Iraqi News