Washington: The U.S. Department of Energy has announced an updated forecast for the price of Brent crude oil in 2026, raising it to $95.39 per barrel from the previous estimate of $94.85. This adjustment reflects a 0.57% increase in the anticipated price for that year.

According to Azeri-Press News Agency, the Energy Information Administration (EIA) within the Department of Energy has also provided projections for the year 2027. The administration expects Brent crude oil prices to average $79.39 per barrel. This anticipated decrease is attributed to the resumption of shipping activities through the Strait of Hormuz, which is expected to lead to a restoration of oil production by various countries, subsequently causing a decline in oil prices.

The report also highlights that the average spot price of Brent crude oil in May was $107 per barrel, marking a $10 decrease from April. The decline in prices was noted amid reports of the United States and Iran nearing an agreement to extend the current ceasefire and reopen the Strait of Hormuz, though the agreement has not been finalized. The report further mentions that a significant portion of the region's oil production remains halted, and global oil inventories continue to deplete as they strive to meet ongoing demand.