Standard Chartered analysts have been optimistic about oil prices even as U.S. production hits record highs. They predict U.S. producers will cut output due to low prices and expect global economic stimulus to support prices. However, they have lowered their 2026 and 2027 price forecasts due to changes in the futures curve.

U.S. shale production costs are rising, with analysts predicting costs could reach $95 per barrel by the mid-2030s. Many producers need prices above $65 to turn a profit, leading to potential output cuts. Europe is facing gas shortages as winter approaches, with concerns about supply disruptions from Russia and Ukraine.

Europe’s gas inventories are depleting earlier than usual, with increased demand and supply concerns pushing prices higher. Despite volatility in U.S. natural gas prices, forecasts of above-average temperatures may limit further gains. Winter fundamentals, including LNG export capacity, are expected to support prices despite high storage levels.

Read more at Yahoo Finance: StanChart Finally Turns Bearish, Cuts Oil Price Forecast By $15/bbl