Oil Price Will Decline Rabobank

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Oil Price Will Decline Rabobank

Oil Price Will Decline To $60

Rabobank has issued a forecast for the oil prices in 2026. According to Rabobank's analysts, Brent oil prices will decline to $60 during the first few months of 2026.

Given the current Brent oil prices, the Rabobank's forecast tells us that the prices will not move much in the next few months. They also added that the long-term trend for Brent oil prices is downward.

Oil Market Will Face Oversupply

The bank also added that Brent oil prices will be around the $58 to $60 range for the rest of the year. However, they warned that the risk for a downside move in Brent is very high.

One major risk for the Brent price is the oversupply of oil in the markets. According to the IEA's forecasts, there will be a surplus of 3.5 to 4 million barrels per day in 2026.

So, the risks of an oversupply in the market are very real. In case of excessive oversupply, there's a real chance that the Brent prices might drop below the $55 level.

Rabobank added that the oil inventories will surely rise this year. However, the forecast from the IEA is a little exaggerated as the OPEC members are very close to their capacity.

For the year 2026, no output hikes from the oil-producing countries are expected. So, the next obvious move for the OPEC+ will be potential supply cuts.

An excessive oversupply in the oil market can even push the oil prices below the $50 threshold. In that case, all the big players will likely announce voluntary supply cuts.

Amidst all of this, it is also important to note that Russian oil exports remain under pressure due to the tighter sanctions. On top of that, geopolitical disruptions are also affecting the oil markets in the near term.

The overall picture clearly shows that oil will remain under pressure for the rest of 2026. Also, the key theme for the oil markets this year will be oversupply and geopolitical tensions.

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