Broker Name: DBS
Date of Report: March 2026
Excerpt from DBS report.
Report Summary
- DBS has raised its Brent crude oil price forecasts for 2026 to USD75-80/bbl and for 2027 to USD65-70/bbl, citing heightened risks from escalating US-Iran conflict and attacks on Gulf energy infrastructure.
- The effective closure of the Strait of Hormuz due to security and insurance risks has severely disrupted oil, LNG, and refined product flows, with significant upside risk to energy prices if tensions persist.
- While spot prices have spiked, DBS cautions against aggressively investing in oil & gas proxies given strong year-to-date gains and uncertain impact on long-term earnings.
- Prolonged conflict could push oil prices well above USD100/bbl, with global supply chains for crude, LNG, refined products, LPG, naphtha, and fertilizers facing disruption.
- Regional oil & gas capital expenditure plans and offshore operations are under pressure, with service companies likely to face earnings risk due to operational delays and higher costs.
- Mitigating factors include alternative pipeline routes and ongoing diplomatic efforts, but no clear pathway to de-escalation is currently established.
- DBS expects oil prices to normalize once tensions subside, unless structural supply disruptions persist.
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
