Fitch Ratings has upgraded its outlook for the global oil and gas sector to 'improving' from 'neutral', attributing this change to a significant rise in oil prices caused by supply disruptions, particularly the closure of the Strait of Hormuz. The agency forecasts that elevated crude prices will enhance cash flows, profitability, and credit metrics for producers in the coming months. Fitch has increased its average Brent crude price assumption for 2026 to USD 87 per barrel, compared to approximately USD 68 per barrel in 2025. However, Fitch cautions that this price strength may not be sustainable in the long term, as it anticipates a return to oversupply conditions once normal shipping activities resume. The agency highlights that strong non-OPEC production growth and potential output increases from OPEC could further pressure prices later in the year. Despite the expected price moderation, the near-term earnings environment for oil and gas companies has improved significantly, supporting the revised sector outlook and strengthening balance sheets across the global energy sector.