Brent crude oil price is forecast to average $74 per barrel in 2025 and $71 per barrel in 2026, APA-Economics reports citing the report of Asian Development Bank (ADB).
Oil prices are expected to decline on weakening global demand and ample supply. Escalating trade tensions which could dampen global demand, along with rising US crude inventories, have exerted downward pressure on oil prices.
Asian Development Bank noted that the increasing adoption of electric vehicles and the ongoing transition toward renewable energy are anticipated to lower oil demand.
"Global oil supply is projected to increase 1.8 million barrels per day in 2025 and 1.5 million in 2026, driven by production from OPEC+, the US, Canada, Brazil, and Guyana. In its 3 February 2025 meeting, OPEC+ confirmed its plan to commence increasing output from April 2025. In the absence of major geopolitical disruptions to oil supply, moderate demand growth combined with rising supply is likely to weigh on oil prices," Asian Development Bank added.
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