Editor’s Note
This article outlines MK Wealth Management’s forecast for global crude oil prices, predicting short-term strength but a long-term range of $68-70 per barrel.
Global crude oil prices may show slight strength in the short term but will remain in the range of $68-70 per barrel in the long term. This prediction has been made in the latest report by MK Wealth Management.
Signals from fundamental market principles indicate that consumers are cautious due to the sluggish pace of the global economy. Despite OPEC+ production restrictions, Brent crude has been stuck in the $60-65 range for a year. The gap between declining demand and increasing supply is keeping prices suppressed.
Forecasts indicate that demand is lagging behind production growth. Prolonged low prices have reduced investment in the energy sector. Major companies are focusing on strengthening cash reserves and balance sheets. The resumption of production from Venezuela and Iran is benefiting Asia, particularly China.
Nevertheless, geopolitical changes are raising questions about supply continuity. Dr. Joseph Thomas, Head of Research at MK Wealth, says:
He advised energy companies to focus on capital discipline and efficiency. The U.S. Energy Information Administration (EIA) estimates that global inventories will increase until 2026, with the average Brent price remaining at $55.
This is a relief for importing countries like India, as it will help control inflation. Investors should keep an eye on efficient companies.