Oil price weakness set to curb large-scale M&A
Companies will continue shifting more towards gas, where the outlook is stronger
Lower oil prices next year are likely to sap appetite for aggressive M&A expansion in the hydrocarbons industry, although rapid growth in gas demand will encourage companies to pursue growth there. This year has seen a resurgence in M&A after several subdued years, but if the narrative of persistently weaker oil prices in 2026 becomes reality, this dynamic will weigh on valuations and investment ambitions. There is a credible case that points to supply outstripping demand in 2026 as OPEC+ unwinds its production cuts and non-OPEC output continues to rise, particularly across the Americas. That imbalance could push Brent prices down into the mid-$50s/bl, compared with averages of $70–8
Also in this section
23 January 2026
A strategic pivot away from Russian crude in recent weeks tees up the possibility of improved US-India trade relations
23 January 2026
The signing of a deal with a TotalEnergies-led consortium to explore for gas in a block adjoining Israel’s maritime area may breathe new life into the country’s gas ambitions
22 January 2026
As Saudi Arabia pushes mining as a new pillar of its economy, Saudi Aramco is positioning itself at the intersection of hydrocarbons, minerals and industrial policy
22 January 2026
New long-term deal is latest addition to country’s rapidly evolving supply portfolio as it eyes role as regional gas hub
