Goldman Sachs raises oil price forecast for second half of 2025

Goldman Sachs has increased its oil price forecast for the second half of 2025, projecting Brent crude to average around $86 and WTI crude at $83 per barrel. The revision reflects concerns over potential supply disruptions and declining OECD petroleum inventories. Additionally, the bank cited reduced industry investment and anticipated demand growth over the next decade as key factors supporting its bullish outlook.

For 2026, Goldman Sachs maintained its previous forecast, noting a divergence between long-term price increases and an expected surplus of 1.7 million barrels per day.

The bank anticipates that OPEC+ will phase out its voluntary production cuts of 2.2 million barrels per day by September. Meanwhile, if Iranian supply declines, Brent prices could surge to $90. At the same time, rising inventories in China and other regions may cap prices at $60 in 2026.

In light of these uncertainties, Goldman Sachs advised traders to hedge against downside risks for 2026.