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Crude Prices to Dip Below $70 by Mid-2027, Says Matrix Global CEO
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CNBC TV18•23-09-2026, 12:42
Crude Prices to Dip Below $70 by Mid-2027, Says Matrix Global CEO
- •Matrix Global CEO Richard Redoglia predicts crude prices will fall below $70 by mid-2027 due to returning excess refinery capacity and adequate global supply.
- •Brent crude faces a natural ceiling of $115-$120 a barrel, as higher prices could lead to demand destruction.
- •The current pressure in the diesel market is expected to ease as refinery capacity comes back online.
- •Redoglia anticipates significant moderation in oil and distillate prices, with India emerging as a major player in global energy markets.
- •The long-term effect of disinvestment in the refinery sector has led to minimal excess capacity, impacting current prices.
Key Questions Answered
Matrix Global CEO Richard Redoglia expects crude oil prices to drop below $70 by mid-2027 as excess refinery capacity returns online and global supply remains adequate.
High diesel crack spreads are driven by a lack of excess capacity in the global refinery sector combined with the impact of the war in Ukraine, specifically the bombing of Russian refineries.
Richard Redoglia believes the US will likely not pressure India to stop importing Russian oil because doing so would have a severely detrimental effect on both distillate and crude markets.
