Goldman Sachs, a leading investment bank, has said that it expects Brent crude oil prices to decline to the low $50s per barrel by late 2026 due to a widening of the oil surplus next year.
"We expect the oil surplus to widen and average 1.8 million barrels per day in 2025 Q4 - 2026 Q4, resulting into a nearly 800 million barrels rise in global stocks by end 2026," the bank said in a note.
Earlier, in an August 3 note, Goldman Sachs said Brent could average $64 per barrel in the fourth quarter of 2025 and $56 in 2026, but expects an increasing range of risks to its baseline estimates from recent developments.
"Increasing pressure on Russia and Iran sanctioned oil supply poses an upside risk to our price forecast, especially given the faster-than-expected normalisation in spare capacity," the investment bank had said.