Washington (HRNW)- The US Energy Information Administration (EIA) has significantly increased its forecast for global crude oil prices this year amid continued disruptions to oil shipments through the Strait of Hormuz.
According to Al Jazeera, the EIA raised its forecast for the average price of Brent crude oil this year from $81.91 to $86.81 per barrel, saying significant disruptions to oil shipments through the Strait of Hormuz are expected to continue through August.
The agency also increased its forecast for West Texas Intermediate (WTI) crude oil. Its previous estimate of $76.26 per barrel has been revised upward to $80.88 per barrel.
According to the EIA, prolonged disruption in the Strait of Hormuz poses a major risk to global oil supplies because a substantial volume of crude oil reaches international markets through the strategic waterway.
For 2027, however, the agency has issued a considerably lower forecast, projecting an average Brent crude price of $69.39 per barrel and WTI at $65.39 per barrel.
Analysts say oil prices could decline if shipping through the Strait of Hormuz returns to normal and global supplies are restored. However, prolonged regional tensions and continued disruption to maritime transportation could keep upward pressure on crude oil prices.
The global energy market is closely monitoring developments involving the United States and Iran, the Strait of Hormuz and international oil supplies, as further changes in the situation could cause significant fluctuations in crude oil prices.
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