Barclays raises Brent forecast to $72/brl for 2025

Oil drilling rigs

Barclays on Thursday said it raised its Brent oil price forecast by $6 to $72 per barrel for 2025 and by $10 to $70 a barrel for 2026 on an improved outlook for demand, Reuters reported.

"Geopolitical tensions have eased as the US.-mediated ceasefire between Israel and Iran continues to hold and the risk premium has evaporated, but price action has been reflecting better-than-expected fundamentals, in our view," said Barclays in a note.

Despite the rapid increase in output from the OPEC+ alliance, global crude oil inventories declined in the second quarter.

The bank also raised its forecast for global oil demand growth by 260,000 barrels per day (bpd), supported by a noticeable rise in consumption among OECD countries, where demand exceeded previous estimates.

Analysts expect US oil demand to grow by 130,000 bpd this year, 100,000 barrels higher than earlier projections, despite expectations of a gradual slowdown in economic activity later in the year.