Oil prices weakened in late 2025, hovering around US$60 per barrel—more than 20% below the year’s high—as trade uncertainty, soft demand and Opec+’s faster unwinding of production cuts weighed on sentiment. Most analysts expect oil prices to remain under pressure in the short term, with forecasts from the US Energy Information Administration, Goldman Sachs and JPMorgan pointing to surplus supply and Brent potentially falling into the mid-US$50s or lower in 2026.

However, the long-term outlook is more constructive. The International Energy Agency, Oxford Institute of Energy Studies and Morningstar expect oil demand to rise again from 2027 as consumption in emerging markets increases and supply tightens. Aviation and petrochemicals are seen as the main growth drivers, as both sectors are difficult to decarbonise and are projected to see strong demand growth through 2050. As a result, oil prices are expected to trend higher over the longer term, potentially exceeding US$100 per barrel in the 2040s.

For Singapore-listed offshore and marine companies, brokers remain cautiously optimistic. Despite near-term oil price weakness, capex decisions by oil majors are driven more by long-term strategy than spot prices. Companies such as Seatrium, Marco Polo Marine, Pacific Radiance, Mermaid Maritime, Nam Cheong and Beng Kuang Marine are expected to benefit from sustained exploration, higher fleet utilisation and improving margins as global oil demand remains resilient.

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