Brent Crude Stabilizes Near Sixty Six Dollars as Risk Premiums Fade

2026 Supply/Demand Balance

The EIA forecasts Brent to average $56 in 2026, a 19% decrease from 2025. This bearish outlook is driven by a projected increase of 1.4 million barrels per day in global production, primarily from South America and OPEC+ nations.

Iranian Shipping Threats

Concerns over an Iranian blockade of the Strait of Hormuz are providing the only significant floor for prices. Without this 'war premium,' Brent would likely be trading in the high $50s already.