Similarly, OCBC has maintained its view for crude oil prices to average US$90/bbl. OCBC notes that unrest and volatility in the near term suggests that upside risks to oil prices will persist.
The geopolitical premium on oil prices has returned following the breakout of the conflict between Hamas and Israel in Gaza, says DBS in a note dated Oct 10. However, there will be no direct impact to global oil market balance or trade routes immediately.
As the situation is currently unfolding, DBS is keeping its oil forecasts unchanged, with an upside bias at US$85 a barrel (bbl) levels for now.
