According to World Bank data, the average global oil price in January 2026 reached US$63.65 per barrel.
The price increased by 4.6% month-on-month, but was still 18.6% lower year-on-year.
According to the U.S. Energy Information Administration (EIA), the monthly increase in oil prices in January 2026 was influenced by disruptions in global oil production due to weather factors, as well as the conflict between the United States (US) and Iran.
However, EIA assessed that these disruptions were only short-term.
"Despite these short-term events, we expect oil prices will decline in 2026, as global oil production exceeds global oil demand, causing oil inventories to rise," said EIA in its February 2026 edition of the Short-Term Energy Outlook.
EIA also predicted that the oil price trend would continue to decline until next year.
"We forecast the Brent crude oil price will average $58 per barrel (b) in 2026 and $53/b in 2027," they said.