Goldman Sachs analysts on Sunday projected fourth-quarter Brent and West Texas Intermediate oil prices will fall to an average of $54/bbl and $50/bbl, respectively, on expectations of continued global oversupply and higher production.
The investment bank on Sunday said that barring large supply disruptions or OPEC output cuts, lower prices will be needed to reduce U.S. and non-OPEC production.
The bank also said cited increased stockpiling by Organization for Economic Cooperation and Development countries and a slower build in oil stored on water.
Still, Goldman analysts maintained their 2026 Brent and WTI average price forecasts of $56/bbl and $52/bbl, respectively, on an estimated oil market surplus of 2.3 million b/d driven by an "ongoing supply wave."
The bank said higher-than-expected supply from U.S., Russia and Venezuela will translate into a more gradual oil price recovery in 2027 and it cut its 2027 and long-term oil price estimates.
The bank cut its 2027 Brent and WTI price expectations by $5 to $58 and $54/bbl, respectively, and pared its Brent and WTI forecasts for 2030-2035 to $75/bbl and $71/bbl, again citing higher supply, including from Venezuela.
Goldman, however, said it is still "long-run constructive" on crude oil because of expectations of demand through 2040 in part because of stronger petrochemical, aviation and road transportation demand, given limited alternatives.
This content was created by Oil Price Information Service, which is operated by Dow Jones & Co. OPIS is run independently from Dow Jones Newswires and The Wall Street Journal.
-Reporting by Frank Tang, ftang@opisnet.com; Editing by Jeffrey Barber, jbarber@opisnet.com
(END) Dow Jones Newswires
January 12, 2026 12:29 ET (17:29 GMT)
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