Global oil prices may average $55 per barrel in 2026, analysts at CardinalStone predict.
In their report, Indicators Align for Sustained Macro Gains, they highlight weaker demand and rising supply.
Global Oil Prices Outlook
Consequently, global markets will likely face a surplus despite increased production in key regions.
Meanwhile, Nigeria plans to increase oil output to 1.75 million barrels per day next year.
Nigerias Production Boost
This growth follows a decline in daily crude losses, which have reached their lowest level since 2009.
Moreover, local companies like SEPLAT and ARADEL are investing heavily to boost national production.
For example, projects such as MPNU and Shell asset acquisitions through the Renaissance Consortium support growth.
Oversupply Challenges
The International Energy Agency forecasts that supply will exceed demand by 3.84 million barrels daily in 2026.
Read Also: Dangote Refinery Counters Shutdown Rumours, Output Unchanged
This figure represents nearly 4% of global oil demand, slightly below previous estimates of 4.09 million barrels per day.
Additionally, OPEC plus countries added roughly 2.9 million barrels per day to the market in 2025.
To stabilise prices, OPEC plus decided to pause production increases for the first quarter of 2026.
As a result, Brent crude ended 2025 at $60, down from $74 at the start of the year.
Although prices briefly rose above $71 between May and July, oversupply concerns later dragged them down.
Currently, Brent trades around $61, struggling to climb past $62 on short-term charts.
Because of persistent oversupply and weaker demand, oil price growth may remain limited, affecting major producers.
However, domestic investments and acquisitions could sustain output and maintain investor confidence locally.
Overall, markets worldwide will closely watch supply-demand shifts, which could influence prices and investment trends.
Meanwhile, Nigerias oil sector continues to drive the economy, supported by both local and international companies.
