The US Energy Information Administration raised its oil price forecast for this year and next year on Tuesday, as global stockpiles fall rapidly and diesel markets remain tight due to the ongoing
The US Energy Information Administration raised its oil price forecast for this year and next year on Tuesday, as global stockpiles fall rapidly and diesel markets remain tight due to the ongoing Iran war.
Attacks on Saudi Arabia's East-West Pipeline, a key export route for one of the world's largest oil producers, underscore the risk of further disruptions to physical oil flows and prices, the EIA said in its Short-Term Energy Outlook.
At the same time, exceptionally tight diesel supplies are boosting demand for crude as refiners seek to maximize diesel production, it added.
As a result, falling global inventories and tightening diesel markets are expected to keep crude prices elevated. Global benchmark Brent crude is forecast to average about $105 a barrel in the fourth quarter, $14 above the EIA's previous estimate. US retail diesel prices, which hit record highs last month, are expected to remain above $6 a gallon in October before gradually easing to an average of roughly $4.50 a gallon in 2027, the EIA said.
Overall, for 2026, Brent crude prices are now expected to average about $98 a barrel, up 8% from the EIA's prior forecast last month, the agency said.
Oil and fuel prices
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