Most energy and industrial metals prices will fall in 2025 as structural headwinds to demand build and supply rises. Geopolitical developments remain a key uncertainty and it is easy to think of developments in the Middle East that could push energy prices higher in the near term. That said, the looming wall of supply of LNG will surely weigh on natural gas prices in Europe and Asia, particularly in 2026. Meanwhile, the risk of an escalation in hostilities in the Middle East would loom larger over the oil market were Saudi Arabia and the UAE not sitting on a substantial amount of spare capacity. In fact, a key downside risk for oil prices in the coming years is that cohesion with OPEC+ disintegrates and that Saudi Arabia decides it would be in its long-term interests to ramps up production to claw back market share.
Subscriber content
Read this in full, free
Start a free trial and use one of your 10 free starter credits to unlock this piece.