Goldman Sachs Forecasts Brent Crude to Reach $66 by 2025, WTI at $63

Goldman Sachs analysts predict Brent crude oil prices will rise to $66 per barrel by 2025, with WTI crude expected to reach $63 per barrel. Despite this increase, the bank maintains its long-term outlook for an oversupply situation, forecasting Brent crude to average $56 per barrel and WTI crude $52 per barrel in 2026.

Goldman Sachs has significantly revised its oil price forecasts for the second half of 2025. The investment bank now expects Brent crude to average $66 per barrel, up $5 from its previous forecast, and WTI crude to average $63 per barrel, up $6 [1]. These increases are primarily attributed to the risk of supply disruption, lower oil inventories in OECD countries, and Russia's production constraints [1].

For 2026, Goldman Sachs maintains its previous forecast of $56 per barrel for Brent and $52 per barrel for WTI, despite the upward revision for 2025. The bank attributes this to an offset between a boost from higher long-dated prices and a hit from a wider 1.7 million barrels per day (mbpd) surplus expected in 2026 [1]. This surplus was previously forecast to be 1.5 mbpd.

Goldman Sachs also expects OPEC+ to unwind 2.2 mbpd of cuts by September, including a final 0.55 mbpd increase. The bank highlighted a range of possible outcomes for 2026, including a potential increase in Brent prices to $90 if Iranian supply drops and a decrease to $40 if there is a full unwinding of OPEC+ cuts and a recession [1].

The bank's bullish long-term view is based on factors such as falling investment, a lack of new non-OPEC projects beyond 2026, and growing demand over the next decade. Despite the positive outlook, Goldman Sachs remains cautious for 2026 and recommends hedging against downside risk by buying oil puts and selling calls [1].

References:
[1] Reuters. (2025, July 2). Goldman Sachs raises oil price forecasts for 2025. Retrieved from https://ca.finance.yahoo.com/news/goldman-sachs-raises-brent-oil-183236427.html