Goldman Sachs again lowers oil price forecast for 2026

Goldman Sachs again lowered its forecasts for the average annual price of Brent and WTI oil in 2026. The investment bank cited growing recession risks and the possibility of a larger-than-expected increase in supply from OPEC+.

On April 6, the financial organization lowered the expected average oil price by $4 to $58 per barrel for Brent and $55 for WTI. According to updated estimates by Goldman Sachs, oil demand will grow by 300 thousand barrels per day in 2025 and by 400 thousand barrels per day in 2026.

The bank attributes the weakening demand to the negative impact of slowing economic growth in the US, which outweighs the support from a cheaper dollar and lower oil prices. The bank said it could raise its forecast if President Donald Trump's tariffs are repealed.

Oil prices fell on Monday, adding to last week's losses. Intensifying US-China trade tensions have raised fears of a recession, which could reduce demand for the commodity. On Friday, China imposed retaliatory tariffs of 34% on imports from the US, and limited exports of some rare earth metals.