Goldman Sachs expects oil prices to continue their decline in the coming period, based on forecasts of strong growth in supply. It noted that the average price of Brent crude is expected to reach around $60 per barrel for the remainder of 2025, while West Texas Intermediate crude is expected to average around $56.
In 2026, the bank predicts that the average price of Brent crude will drop to $56 per barrel and $52 for West Texas Intermediate, reflecting the impact of increasing pressures on the markets.
Goldman Sachs clarified that these forecasts reflect the challenges facing oil prices due to the expected increase in global supplies, which may exceed demand in some markets, thereby reinforcing downward pressure on prices. While U.S. shale production is considered a key factor in the market, Goldman Sachs sees that most of the supply growth will come from outside the United States, particularly from major producing countries like Saudi Arabia and Russia, which may increase their production to support their revenues amid economic challenges.
These forecasts come at a time when the market is experiencing significant volatility, with varying impacts of global monetary and fiscal policies on demand for oil prices. Oil prices also face other challenges, such as the transition to clean energy and increasing pressure to meet climate goals, putting additional pressure on producers to adjust production policies in line with global shifts.
Nevertheless, Goldman Sachs analysts believe that oil prices may experience some fluctuations in the short term due to geopolitical factors or unforeseen supply disruptions, but the overall trend indicates a gradual decline in prices as supply continues to grow.
