Oil Prices Stay High as War Keeps Supply Tight Into 2027

AI Summary

Prolonged war between the United States, Israel, and Iran is keeping oil supply tight and supporting elevated crude prices. Brent futures are quoted at $102.59 per barrel for January 2027 and $92.71 for June 2027, reflecting expectations of sustained market pressure.

During the first three months or so of the U.S. and Israeli war with Iran, the dominant mood on oil markets was that the conflict would end any day now. The brief June ceasefire reinforced that optimism, so it took a while longer for facts to be faced: the war would not end any day now. It might even extend into next year—and this means higher prices for a longer time. The ICE Brent crude futures contract for January 2027 is trading at $102.59 per barrel. The June 2027 contract is only slightly lower, at $92.71 per barrel, and the December…