Crude oil prices are expected to moderate to around USD 70 per barrel in 2027 as prospects of de-escalation in the US-Iran conflict, increasing crude exports from the Middle East and improving external conditions could ease pressure on global oil markets, highlighted a report by the State Bank of India (SBI).

The report said Brent crude prices are likely to ease over the next 10 days, with the average price expected to remain around USD 87 per barrel, according to its LTSM forecast.

It said, “Possibility of peace deal, more predictable US after mid-term elections, increasing crude exports from Middle East despite shortage in diesel will help prices stay on the lower side and could touch February 2026 levels of around USD 70 in 2027”.

The report also highlighted that the improvement in the external environment is also one of the factors influencing SBI’s assessment of the Reserve Bank of India’s upcoming monetary policy decision.

For the first time in the new series, India’s Consumer Price Index (CPI) inflation crossed the 6% mark and stood at 6.09 per cent in October 2026 and breached the RBI’s upper tolerance level.