Oil Supply-Demand Picture Remains Unchanged Despite Middle East Tensions, HSBC Says -- Market Talk

Dow Jones
2025/06/23

1325 GMT - Oil market fundamentals haven't been affected by Middle East developments so far, HSBC says, maintaining its forecast for a surplus of more than 1 million barrels a day in the fourth quarter and 900,000 barrels a day next year. The bank expects Brent crude to average $67 a barrel through the third quarter of this year and $65 in the fourth. "There could be upside risk to our forecasts if supplies are disrupted or if the risk premium lingers on persisting uncertainty around Iran's response," HSBC analysts say. However, "we do not see this situation as the start of a rally like 2022, when prices rose well above $100 a barrel on fears of big losses of Russian supply." Brent crude and WTI currently trade 0.3% higher at $77.25 and $74.04 a barrel, respectively. (giulia.petroni@wsj.com)

 

(END) Dow Jones Newswires

June 23, 2025 09:25 ET (13:25 GMT)

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