Why SBI Expects Brent Crude To Fall To $70 By 2027

SBI expects inflation to remain above 6 per cent next month before decelerating thereafter. (File Photo)

Global crude oil prices could undergo a major correction by 2027, with Brent crude potentially falling to around $70 per barrel as geopolitical tensions ease and Middle East supply increases. According to a State Bank of India (SBI) report, reduced tensions between Washington and Tehran, stronger crude exports, and more favourable global economic conditions could help bring down international oil prices.

The bank's projections suggest that the anticipated improvement in the geopolitical and supply environment may provide relief to oil markets, which have faced considerable uncertainty in recent months.

In its latest assessment, SBI expects Brent crude prices to soften over the coming 10 days, with the average price likely to hover around $87 per barrel, based on its LTSM forecast.

Looking further ahead, the report points to the possibility of prices returning to levels last witnessed in February 2026, potentially reaching approximately $70 per barrel during 2027.

Explaining the factors behind its outlook, the report said, “Possibility of peace deal, more predictable US after mid-term elections, increasing crude exports from Middle East despite shortage in diesel will help prices stay on the lower…

Original source: https://www.timesnownews.com/business-economy