UPDATE 1-UBS raises September oil price forecasts

Adds additional details

May 21 (Reuters) - UBS UBSG.S raised its September oil price forecasts by $10 a barrel on Thursday, projecting Brent crude at $105 a barrel and U.S. West Texas Intermediate (WTI) crude at $97.

  • The bank also raised its December and March forecasts by $5 per barrel.

  • UBS believes near-term risks remain skewed to the upside, reiterating that if the supply disruption lasts longer, prices could overshoot in the short term to trigger significant demand destruction.

  • Under this scenario, Brent would likely trade above $150 a barrel, and scarcity fears could lead to hoarding and further amplify price movements.

  • Iran has unveiled steps entrenching its control of the crucial Strait of Hormuz, which remains mostly closed.

  • Overall oil production losses likely reached 650 million barrels over March and April, and are on track to exceed 1 billion barrels by the end of May, the bank said.

  • Brent crude futures LCOc1 were trading around $106.99 a barrel by 1207 GMT, while U.S. West Texas Intermediate futures CLc1 were at $100.58.


This page is machine-translated. Sahm tries to improve but does not guarantee the accuracy and reliability of the translation, and will not be liable for any loss or damage caused by any inaccuracy or omission of the translation. *Disclaimer: The above content only represents the author's personal position and opinion and does not represent any position of Sahm Capital Financial Company and Sahm cannot confirm the authenticity, accuracy, and originality of the above content. Investors should consider the risks of investment products in light of their circumstances before making any investment decisions. When necessary, please consult a professional investment advisor. Sahm does not provide any investment advice, nor does it make any commitments and guarantees.