Survey of 126 asset managers and strategists sees demand destruction balancing supply shocks amid persistent war risk premiums.
Oil prices are expected to average between $81 and $100 per barrel over the next 12 months, driven by demand destruction and geopolitical risks. The forecast reflects efforts to stabilize a market facing its worst supply shock in history, with war risk premiums sustaining elevated levels.
Over 40% of survey respondents identified demand destruction as the primary factor in market balancing, while 21% cited logistical adjustments and re-routing. The survey underscores persistent concerns over supply disruptions and their impact on global oil markets.
No immediate market reaction was reported following the survey release.