Crude prices have remained range-bound at $65–70/bbl. This marks a decline from the highs seen earlier in the year, largely due to easing geopolitical tensions and increased supply. Geopolitical tensions in West Asia, particularly the brief conflict between Israel and Iran in June, had temporarily pushed up Brent crude prices to $79/bbl, but a subsequent ceasefire and stable supply outlook led to a price correction. Rising crude prices, even if moderate, would be positive for the upstream sector.

• Brent remained mostly range-bound at $65-70 over the past two months and averaged $68/barrel in August. The complete rollback of 2.2 million barrels per day (b/d) voluntary cuts of OPEC+ by September is set to further elevate global supply, maintaining a well-stocked market and reinforcing downward price pressure.
• The accelerated increase in OPEC+ output is expected to boost global oil supply significantly, leading to large inventory builds over the coming years.

Industry Outlook – Stable