UBS’s new Brent price forecasts as Middle East supply risk supports oil prices

What happened: UBS raised its Brent crude forecasts, with strategist Giovanni Staunovo lifting the year-end target to $110 from $100, citing volatile Middle East supply, falling inventories and record freight rates. Key numbers: Year-end Brent target $110 (from $100). Why it matters: Staunovo retained a moderately constructive near-term outlook for crude oil, noting that higher flows have not normalized the market as vessels remain exposed to attacks and insurance and freight costs have risen sharply. UBS said uncertainty around its forecasts remains elevated.

UBS raised its Brent crude forecasts, with strategist Giovanni Staunovo lifting the year-end target to $110 from $100, citing volatile Middle East supply, falling inventories and record freight rates.

Staunovo retained a moderately constructive near-term outlook for crude oil, noting that higher flows have not normalized the market as vessels remain exposed to attacks and insurance and freight costs have risen sharply. UBS said uncertainty around its forecasts remains elevated.