UBS Raises Year-End Brent Forecast to $110 as Supply Risks Persist

UBS raised its year-end Brent crude forecast to $110 a barrel from $100, citing ongoing supply disruptions in the Middle East, falling inventories and record transportation costs.

The bank also raised its March 2027 target to $95 a barrel and its June 2027 target to $90. Both revised targets are below the year-end forecast: March’s level is $15 lower, while June’s is $20 lower.

UBS cited a decline of more than 500 million barrels in global visible oil inventories since February. It also pointed to tanker freight costs of $30 to $40 a barrel on routes from the Middle East to China.

Earlier in October, Brent crude climbed above $110 a barrel.