Broker Name: DBS
Date of Report: March 2026
Excerpt from DBS report.
Report Summary
- DBS has raised its Brent crude oil price forecasts to \$75-80/bbl for 2026 and \$65-70/bbl for 2027, citing heightened geopolitical risks from the US-Iran conflict.
- The escalation has led to attacks on regional energy infrastructure and an effective closure of the Strait of Hormuz, severely impacting global oil, LNG, and refined product flows.
- DBS cautions against aggressively investing in oil & gas proxies, as recent price spikes may not yield sustained earnings upgrades.
- The conflict has disrupted maritime traffic, trapped offshore vessels, and caused supply shocks in oil and LNG markets, with significant impacts on global commodity flows and capex plans.
- While a rapid resolution seems unlikely, mitigating factors include some alternative pipelines and efforts by US and EU forces to secure shipping channels.
- Prolonged disruption could push oil prices above \$100/bbl and cause demand destruction, but current disruptions are not expected to be as severe as past supply shocks.
- Middle East oil services and capex are at risk, with potential delays and earnings pressure for service companies due to operational and supply chain disruptions.
- DBS does not foresee a sustained re-rating of oil & gas equities unless physical supply is impaired for an extended period.
above is an excerpt from a report by DBS. Clients of DBS can be the first to access the full report from the DBS website:
https://www.dbs.com
