Story · Global · 11 Aug 2026
EIA expects Brent oil to ease from about $85 as supply recovers
The August outlook links oil supply, inventories and geopolitical disruption to the energy costs faced by households and firms worldwide.
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30-second read
about $69 per barrel
Brent crude forecast, 2027
about $85 per barrel
Brent crude forecast, Q3 2026
Exam link: Inflation → real incomes and purchasing power → consumption; policy response depends on the cause
Understand the storyExpand Close
The US Energy Information Administration forecast Brent crude at about $85 a barrel in the third quarter of 2026 and around $69 in 2027 as inventories rebuild.
What happened
The monthly outlook revised the expected path for global energy markets, incorporating supply disruption, recovery and the effect of inventories on future prices.
Why it matters
Oil prices feed into transport, production and household energy costs, affecting inflation, real income and trade balances differently across countries.
Economic context
Forecasts are highly uncertain because geopolitical events and producer decisions can change supply quickly, while demand depends on global growth.
All key dataExpand Close
- Brent crude forecast, 2027
- about $69 per barrel
- Brent crude forecast, Q3 2026
- about $85 per barrel
Use it in an examExpand Close
Evidence
about $69 per barrel — Brent crude forecast, 2027
Explain
Higher oil prices → higher transport and production costs → SRAS shifts left → price level rises and real output falls; falling oil prices can reverse part of this pressure
Evaluate
Oil-price effects differ between importing and exporting economies and depend on how persistent the price move is, how energy-intensive production is and whether firms pass costs on to consumers.
Useful diagram: AD/AS diagram showing an oil-price shock changing short-run aggregate supply
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