Newsletter No. 185
Good afternoon subscriber,
This week, higher oil prices are starting to have a bigger impact across global markets. Analysts raised their 2026 oil forecasts as disruptions around the Strait of Hormuz continue, while OPEC+ is expected to keep production targets unchanged.
We’re also seeing the ripple effects of higher energy costs, with investors pulling billions out of Indian markets as oil moves back above $100. At the same time, the AI and data center boom continues to drive massive investment in power and infrastructure here in the U.S.
The common thread is energy demand. Whether it’s global oil markets or the growing power needs of AI, reliable energy supply remains one of the biggest stories to watch.
Keep reading this week’s The Upside for a closer look at the stories shaping the energy market.
This Week's Headlines
Oil and Gas News
- Hormuz Disruption Pushes Oil Forecasts Higher
- OPEC+ Holds Production Steady
- Higher Oil Prices Shift Global Money
What's Happening at King
- What Still Drives Oil & Gas Markets? | David Blackmon on Energy, Policy & Demand
- Upcoming John Mauldin Webinar on Energy Demand, Diesel Costs and the Changing World
- Continuing Tax Webinar Series Featuring Tax Strategist Ed Lyon
Move to Watch
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AI Boom Drives Data Center Growth
Oil and Gas News
Hormuz Disruption Pushes Oil Forecasts Higher
Oil price forecasts are moving higher as the disruption in the Strait of Hormuz continues. Analysts now expect Brent to average about $89 a barrel in 2026 and WTI about $84.
Some oil is getting back into the market, but shipping through Hormuz is still not back to normal. That means the market remains tight, especially as inventories are being drawn down.
The big things to watch are how quickly Gulf exports recover and what happens with demand from China. Right now, many analysts don’t expect the oil market to loosen up significantly until 2027.
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OPEC+ Holds Production Steady
OPEC+ is expected to keep its oil production targets unchanged for November. The bigger issue is that many Gulf producers are already pumping and exporting less than their quotas because of ongoing shipping disruptions around the Strait of Hormuz.
Even though OPEC+ has raised production targets this year, actual supply has not kept up. Production across the group is still well below pre-war levels, which is helping keep the global oil market tight.
For now, the group appears more focused on setting its 2027 production plans than making another major change this fall.
Higher Oil Prices Shift Global Money
Oil prices moving back above $100 are putting pressure on countries like India that depend heavily on imported energy. Foreign investors pulled billions of dollars out of Indian markets in September as higher oil costs weakened the rupee and raised concerns about inflation.
For U.S. oil and gas, the story is different. Higher oil prices can make American production more valuable and encourage additional drilling here at home. It’s another reminder of how important reliable U.S. energy production becomes when global supplies are disrupted.
The key thing to watch is how long these higher prices last. If oil stays elevated, U.S. producers could continue to see stronger economics, but volatility remains a major factor.
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Happening at King
What Still Drives Oil & Gas Markets? | David Blackmon on Energy, Policy & Demand
On this episode of The Jay Young Show, we go back into the archives with David Blackmon. David and I discuss the boom-and-bust cycles that have shaped the oil and gas industry, the impact of horizontal drilling and hydraulic fracturing on American energy production, and the supply-and-demand forces that influence oil and natural gas prices. We also explore energy policy, electric vehicles, renewable energy, infrastructure, and the bigger question of whether the world is truly approaching peak demand for oil and gas.
Upcoming Mauldin Webinar on Energy Demand, Diesel Prices and the Changing World
Join King's Chief Economist John Mauldin and SVP Rachel Griffith for a timely discussion on the macro and geopolitical forces reshaping energy markets and what they could mean for investors, including how diesel prices are affecting everyone's pocketbooks.
Date: Tuesday, October 7, 2026
Time: 11 a.m. CT
Register Here
Upcoming Tax Webinar Series Featuring Tax Strategist Ed Lyon
Planning ahead can make a big difference when it comes to taxes. Join Tax Strategist Ed Lyon and King SVP Rachel Griffith for a three-part webinar series focused on practical tax strategies for high-income professionals, business owners and investors.
Rethink Your Tax Strategy
Date: Tuesday, October 13, 2026
Time: 2 p.m. CT
Register Here
Move to Watch
AI Boom Drives Data Center Growth
The data center buildout keeps getting bigger. Accelevation, a company that builds power and cooling infrastructure for large data centers, is looking to raise about $660 million through an IPO that could value the company at nearly $5 billion.
The bigger story is the demand behind it. Accelevation believes its market could grow from about $22 billion in 2025 to $80 billion by 2030 as AI and cloud computing require more data centers and significantly more power.
That matters for energy. Every new data center has to be powered around the clock, and the continued growth of AI is creating another major source of electricity demand in the U.S. The infrastructure investment we’re seeing today is another sign that America is going to need more reliable energy to support what’s coming.
All the best,
Jay
