Kpler's Head of Market Engagement for EMEA and APAC regions, Matt Stanley, has cautioned that elevated oil prices are becoming a structural rather than temporary phenomenon, with crude potentially reaching $150 per barrel in 2027 according to the energy analytics firm's assessment. Stanley emphasized that price pressures are no longer confined to short-term market disruptions but reflect deeper market imbalances. He highlighted Europe as potentially the most vulnerable region to near-term price shocks, particularly in refined product markets including diesel and jet fuel.
The analyst identified constrained refinery capacity as a critical factor supporting elevated product prices. Additionally, disruptions to shipping flows through key maritime chokepoints, specifically the Red Sea and the Strait of Hormuz, are expected to intensify supply constraints and push prices higher at the pump for European consumers. Stanley noted, however, that sustained higher oil and product prices could eventually suppress demand growth, providing some relief to the market.
This demand destruction mechanism could moderate price escalation in the medium term, though the outlook remains uncertain given structural supply constraints. The warning reflects growing concerns within the energy sector about the persistence of high prices driven by supply-side factors rather than transient geopolitical events or seasonal variations. Source: CNBC, September 17, 2026
Source: cnbc.com