Melbourne-based oil producer Karoon Energy Ltd has indicated that oil prices are likely to remain elevated and volatile over the coming quarters, driven by geopolitical conflicts causing supply disruptions and an uneven global production distribution.

"The fundamentals point to a 'higher for longer' environment for oil prices," said Chief Executive Carri Lockhart in an interview following the company's half-year results release, forecasting prices to fluctuate within a range of $75 to $85 per barrel.

Throughout this year, the US-Iran conflict and the ongoing Russia-Ukraine war have persistently disrupted global oil markets. Brent crude has averaged approximately $87 per barrel this year, representing an increase of more than a quarter compared to the 2025 average.

However, the US Energy Information Administration (EIA) projects that oil prices will retreat to $69 per barrel by 2027, as Persian Gulf crude supply recovers and global inventories are rebuilt. Lockhart noted that oil demand is expected to remain strong over the next decade, as a significant portion of the global population still lacks access to reliable energy security.