Goldman Sachs Raises December 2026 Oil Price Forecast to $90/bbl
Goldman Sachs has raised its December 2026 crude oil price forecast to $90 per barrel, citing supply risks due to the West Asia conflict. The forecast is lower than current prices around $103/bbl.
What Happened?
Goldman Sachs has raised its December 2026 crude oil price forecast to $90 per barrel, citing supply risks due to the West Asia conflict. The forecast is lower than current prices around $103/bbl.
AI Quick Summary
Goldman Sachs raises its December 2026 oil forecast to $90/bbl due to supply risks from the West Asia conflict.
Key points
- Goldman Sachs increased its December 2026 oil forecast by 6% to $90/bbl.
- Current oil prices are around $103/bbl, nearly 13% higher than the forecast.
- The 2027 average Brent forecast remains unchanged at $80/bbl.
- S&P Global Energy expects crude prices to remain in the $80-$100 range through 2027.
- West Asian crude oil production is unlikely to return to pre-war levels by the end of 2027.
Key insights
- The increase in the oil forecast indicates heightened supply concerns due to geopolitical tensions.
- If Gulf output remains low, prices could average around $125/bbl in 2027.
- Conversely, a recovery in Gulf production could lead to prices dropping into the $60s in 2027.
Market Impact
Oil and Gas
PositiveThe forecast increase may lead to higher oil prices, impacting the oil and gas sector positively.
Why it matters
The updated forecast reflects ongoing supply risks that could affect global oil prices.
Entities
Source
Business Standard
