Rbc Forecasts Oil Price

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Rbc Forecasts Oil Price

RBC Forecasts Oil Prices To Stay Above $75 In 2027

Analysts from RBC believe the average oil price in 2026 will be $80.10. In 2027, they expect the oil price to ease down to $75.80. So, even if the oil prices retreat gradually, they will remain elevated in 2027.

Since the start of 2026, oil prices are up by 47%. This might be a good thing for oil traders. However, high oil prices are not a good thing for the global economy and consumers.

Oil Prices To Decline Modestly In 2027

High oil prices are expected to keep inflation high. In turn, this would force many central banks around the world to keep rates on hold or even think about rate hikes.

The forecast from RBC shows they have a firm outlook for Brent crude oil. They are forecasting a modest decline in 2027. But even then, oil prices will still remain high.

This forecast also tells us that oil prices are unlikely to collapse back towards the levels seen at the start of 2026. The RBC management also added that they have a further buyback plan if crude stays above $85.

The high oil prices mean strong cash generation for all the major oil producers. But it remains to be seen how the high prices will impact oil demand. Generally, high oil prices will impact oil consumption.

A more bullish scenario calls for a target of $100 for Brent crude oil in 2027. This difference in the target also highlights the uncertainty of the oil market.

However, it is worth mentioning that high oil prices are mainly driven by geopolitical tensions. If the geopolitical situation eases, we can definitely expect a decline in oil prices.

But even then, the supply will not be as strong as it was before the start of this year. The only thing that could improve the oil supply is the lifting of sanctions on Russia and a few other countries.

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