UBS Analysts Return From Magic Carpet Ride Across Middle East Energy Hubs With Four Big Takeaways

Brent crude oil has been stable above $60 despite brief price fluctuations. OPEC plans a production increase in December with a hiatus until early 2026. UBS analysts recently toured the Middle East, meeting with key energy players. They observed sustained short-term downward pressure on oil prices due to increasing production. Long-term, they anticipate price increases due to tightening spare capacity and government projects. LNG projects are advancing, albeit contingent on the market environment. Oilfield service activity is experiencing a boost and is expected to continue through 2026. Saudi Arabia and the UAE are investing heavily in data centers powered by gas and renewables. UBS believes the Middle East aims to maintain dominance in global energy supply through expansion. Contrarily, firms like JPMorgan and Goldman Sachs forecast further price drops, though their predictions are viewed with skepticism.