Headline: Goldman Sachs Predicts Oil Price Slide Through 2026 Before Post-2027 Recovery
A new Goldman Sachs outlook points to a softer oil market over the next two years as fresh supply swells and the global balance tips into surplus. Delayed pre-pandemic projects are finally ramping up, while OPEC+ is unwinding production cuts—factors that could push Brent and WTI below current expectations before demand and investment dynamics tighten the market again later in the decade.
The bank estimates a persistent oversupply of around 2 million barrels per day through 2026, driven by long-cycle projects coming online alongside rising output from the U.S., Brazil, and OPEC+ members. It now forecasts Brent crude averaging $56 and WTI $52 in 2026, compared with forward prices near $63 and $60. The International Energy Agency flags an even larger glut as soon as 2025, with surplus volumes potentially exceeding 4 million barrels per day, a scenario that could cap crude prices and pressure energy equities and capital spending.
From 2027 onward, Goldman Sachs expects the market to tighten as years of underinvestment limit new supply and low prices in 2025–2026 curb future non-OPEC growth. Under its base case, Brent and WTI gradually return to long-run levels near $80 and $76 by late 2028. Risks remain two-sided: a more resilient non-OPEC response or weaker global growth could pull Brent into the $40s in 2026–2027, while sharper declines in Russian output could lift prices back above $70. Even so, a constructive long-term view may support the back end of the oil curve despite near-term softness.
Key Points: – Goldman Sachs expects a roughly 2 million bpd oil surplus through 2026 as new supply hits the market. – 2026 price forecasts: Brent at $56 and WTI at $52, below current forward curves. – IEA warns the 2025 surplus could exceed 4 million bpd, adding downside pressure to crude. – Market seen tightening from 2027 due to underinvestment and slower non-OPEC growth. – Long-run prices projected to return near $80 Brent and $76 WTI by late 2028. – Key risks: Brent could slip into the $40s on resilient supply or weak demand, or rise above $70 if Russian output falls faster.
