Goldman Sachs forecasts oil prices to fall until 2026

Goldman Sachs projects oil prices will be falling until the end of this year and through next year on increasing risk of global recession and a supply hike from OPEC+.

The bank forecasts prices of WTI and Brent crude to decline and average $59 and $63 per barrel, respectively, through the end of 2025. Next year will see Brent falling to $58 and WTI dropping to $55. 

Additionally, Goldman Sachs expects oil demand to gain only 300,000 barrels per day by the end of 2025 amid trade tensions. The company also lowered its outlook of global demand rise in the period from October to December 2026 by 900,000 barrels per day. 

Major surpluses of 800,000 barrels per day this year and 1.4 million barrels per day next year are to continue to cause a decline in crude prices. 

In case of the slower growth of global economy or a full reversal of OPEC+ production cuts of 2.2 million barrels per day, Brent may fall to the level of $40 next year. In a combined scenario, oil is likely to drop below this level, Goldman Sachs believes.