Goldman Sachs has revised down its oil price forecasts, citing expectations of persistent supply surpluses and subdued demand growth.
- The bank now sees Brent crude averaging $63 per barrel and WTI at $59 for the remainder of 2025.
- For 2026, forecasts fall further to $58 for Brent and $55 for WTI.
The downward revision reflects Goldman’s outlook for large market surpluses, with the oil market expected to be oversupplied by 0.8 million barrels per day (mb/d) in 2025 and 1.4 mb/d in 2026. These surpluses, the bank says, will continue to weigh on prices.
Global oil demand is projected to rise only modestly—by 0.3 mb/d in 2025 on a Q4-over-Q4 basis—adding to the pressure on prices amid robust supply.
The latest forecast comes as global energy markets adjust to slowing demand growth, rising production capacity, and evolving geopolitical dynamics.
This article was written by Eamonn Sheridan at www.forexlive.com.