Geopolitical tension increases oil price forecasts — Reuters poll

According to yesterday's Reuters report, analysts have slightly raised their oil price forecasts following the escalation of geopolitical tensions in the Middle East. However, growing energy supply from OPEC+ and moderate resource demand continue to put pressure on barrel prices.

A June survey of 40 analysts and economists conducted by the agency showed that the average Brent crude price in 2025 should reach $67.86 per barrel. This figure exceeds May's forecast of $66.98. Meanwhile, WTI crude price is projected at $64.51 — also above May's estimate of $63.35. According to LSEG data, year-to-date average prices have been approximately $70.80 and $67.50 respectively.

Earlier last month, heightened tensions between Iran and Israel along with US intervention caused sharp fluctuations in energy prices. Specifically, Brent crude prices surged to $81.40 before plunging to $67.14 after the situation stabilized.

DBS Bank's lead analyst Suvro Sarkar believes the current oil price volatility will persist for several weeks.