Oil Price Forecast Td Securities

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Oil Price Forecast Td Securities

Oil Will Be Near $100 In 2027 - TD Securities

According to TD Securities, the oil prices will be near $90 - $100 in 2027. The key reason for the strong oil prices is the supply shock, which is expected to stay in effect for this year.

In the worst case scenario, the oil prices can also surge by another $50. In that case, the crude oil will trade near $150 in 2027. Given the high geopolitical tensions around the world, we can't outright ignore the case of $150 per barrel.

Oil Market Faces Imbalance

In the long term, the global energy market will continue to face a supply-and-demand imbalance. In fact, the supply is expected to remain under pressure while the demand will remain strong.

The market imbalance is expected to keep the prices higher for LNG, crude oil, and other petroleum products. Also, the inventories around the world are not sitting at normal levels, which is expected to push prices higher.

Also, countries like Japan and China will try to fill up their inventories as quickly as possible. So, this will essentially translate into a deficit of crude oil and send the prices higher.

With all things considered, it seems reasonable for the oil prices to be near $90-$100 for the rest of this year and even in 2027.

But will these high prices also benefit the oil-producing countries? It can only happen if the oil supply from these countries remains at a reasonable level.

However, the global supply chain of oil faces a lot of risks. From the crude oil facilities to trade routes, there are a lot of uncertainties.

On the upside, the oil prices can go as high as $150 per barrel. However, the downside will remain limited as there are too many things that support higher prices in 2026 and 2027.

One hidden risk that can emerge from this whole scenario is slow global growth. Now, that could automatically affect the oil demand in theory, but the supply issues will ensure that oil prices stay supported.

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