Analysts cite higher marginal costs and tightening supply as key drivers for the revised oil price target.
Bernstein Research has set a $75 per barrel long-term oil price target for equity valuations, reflecting rising marginal costs and shrinking reserves. The projection follows a survey of 50 major global energy companies, which highlights increasing spot prices and supply chain inflation.
The firm noted that production costs are under pressure, with the global marginal cost of oil now expected to reach $77 per barrel. This marks a reversal from previous declines, driven by a tightening physical market and higher input expenses.
The adjustment signals potential upward pressure on energy sector valuations and broader inflation trends.