IMF raises 2026 oil price forecast, predicts steeper decline in 2027

The International Monetary Fund (IMF) has increased its average oil price forecast for 2026 to $89.27 per barrel, a 31.8% increase from its April forecast, while predicting a steeper decline of 11.8% in 2027. The updated World Economic Outlook attributes the higher 2026 forecast to the world economy coping better than expected with Middle Eastern conflict shocks, though negative effects may still manifest.