Oil Prices to Hold Steady Despite Mideast Peace

Brent crude prices are anticipated to stabilize between $70 and $90 per barrel, irrespective of potential de-escalation in West Asia, according to Ole Hansen, Head of Commodity Strategy at Saxo Bank. He suggests that while a resolution could normalize oil supplies and reduce logistical costs, the process of rebuilding global oil reserves in the coming quarters will likely sustain prices above pre-conflict levels.

Consumers worldwide may experience a slower decline in elevated fuel costs, such as diesel and jet fuel, as a full restoration of Middle Eastern oil supplies and refinery operations is expected to take time. Hansen advises patience on this front.

Looking beyond crude oil, gold is projected to regain its earlier highs within the next 12 to 18 months. Factors supporting this forecast include decreasing inflation, the possibility of interest rate reductions, and ongoing concerns about government spending and de-dollarization trends.

In contrast, silver's outlook appears subdued following a significant correction, with gold expected to outperform. The long-term forecast for copper remains robust, underpinned by the global shift towards electrification and renewable energy sources. Despite potential short-term pressures from AI-driven demand fluctuations and trade policy uncertainties, consistent demand from major markets and supply challenges for mining companies are set to support copper prices.