MBSB IB Sees Brent, CPO Holding Above Support

KUALA LUMPUR, April 14 (Bernama) -- MBSB Investment Bank Bhd expects benchmark Brent crude oil and crude palm oil (CPO) prices to remain above support levels and potentially re-test resistance at US$114 per barrel and RM4,890 per tonne, respectively, in the near term.

In a research note today, it said the outlook is driven mainly by the United States military’s planned blockade of Iranian ports from April 13.

“This (blockade), and any further escalation, would likely disrupt the market. We therefore recommend taking long positions in crude oil and other commodity-related stocks, supported by fundamental upside,” it said.

RHB Investment Bank Bhd said in a more adverse scenario where the conflict persists or escalates, oil prices could rise sharply, potentially reaching US$140 to US$150 per barrel, depending on the severity and duration of supply disruptions.

“We do not expect oil prices to revert to pre-conflict levels immediately, as restart lags, logistical frictions and lingering risk premiums could keep prices elevated in the near term.

“However, as supply chains stabilise, we expect prices to settle around the mid-US$80 per barrel level before trending lower towards our medium-term assumptions,” it said.

RHB raised its average Brent crude oil forecast for 2026 to US$82.50 per barrel from US$62 previously, and introduced a 2027 forecast of US$72 per barrel.

Year to date, Brent has averaged about US$80.50 per barrel, with first-quarter 2026 averaging US$77.80 per barrel, reflecting heightened geopolitical tensions.

Meanwhile, Hong Leong Investment Bank Bhd said that while the duration of the war remains uncertain, it expects Brent prices to stay elevated for about five months, similar to the period following the outbreak of the Russia-Ukraine war in 2022.

“We revise our Brent assumptions for 2026 and 2027 to US$90 per barrel and US$75 per barrel, from US$70 and US$65 previously,” it said.

-- BERNAMA