Goldman Sachs forecasts continued oil price drops until 2026.

Goldman Sachs predicts that due to the increased risk of economic recession and increased supply from OPEC+organizations, oil prices will continue to decline in the next two years. The bank expects that the average prices of Brent crude oil and West Texas Intermediate crude oil will fall to $63 and $59 per barrel, respectively, for the remainder of 2025, and further drop to $58 and $55 per barrel in 2026.

Given the weak economic growth prospects caused by the global trade war, the bank expects that oil demand will only increase by 300000 barrels per day from the end of last year to the end of 2025.
This Wall Street investment bank predicts that although the market has partially digested expectations of future inventory increases, the significant excess of 800000 barrels per day in 2025 and 1.4 million barrels per day in 2026 will continue to exert downward pressure on oil prices.
Goldman Sachs stated that in the event of a global economic slowdown or a complete reversal of the voluntary production cuts of 2.2 million barrels per day by the Organization of the Petroleum Exporting Countries and its allies (collectively known as OPEC+), Brent crude oil prices may fall to the $40 range in 2026, and in extreme cases may even fall below $40.
As of press time, Brent crude oil futures have fallen to around $64.72 per barrel, while West Texas Intermediate futures are at $61.44.
Goldman Sachs also lowered its forecast for US shale oil supply in the fourth quarter of 2026 by 500000 barrels per day.

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