Oil price forecast 2025 2026 trading desks are responding to the

Trading desks are responding to the "oil price forecast 2025 2026" with increased long crude call spreads. Technical chart patterns show WTI consolidating between $84–$90, while macro models hint that by mid-2026, prices could revert toward long-run means without destabilizing energy equity valuations. “Most large international oil companies and national oil companies will converge on allocating 10-20 percent of overall budgets to low-carbon initiatives. Capital allocation will swing back towards upstream investments, including exploration and business development,” it added. The U.S. Energy Information Administration (EIA) cut its Brent spot average crude oil price forecast for 2025 and 2026 in its latest short term energy outlook (STEO), which was released on August 12. The implication for equity investors is to position early in Q4 2024 to capture the anticipated upward revision cycle before earnings season.