Goldman Sachs Reiterates Bearish Stance on Crude Oil Prices for 2025 and 2026

SEATTLE (Oil Monster): Leading investment bank Goldman Sachs reiterated its bearish stance on crude oil for the current year and the next.

In a client letter, Goldman Sachs stated that it now projects the average price of Brent crude oil to be $56 per barrel in 2026. Additionally, it is predicted that the average price of West Texas Intermediate (WTI) crude will be $52 per barrel in the upcoming year. Expectations of an expected increase in non-OPEC crude production are the basis for the pessimistic view. Additionally, it kept Brent and WTI's 2025 projections at $60 and $56 per barrel, respectively.

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Goldman Sachs predicts that during the next two years, non-OPEC oil production—aside from Russia and U.S. shale producers—will increase significantly to about 1 million barrels per day. Additionally, the amount of crude oil produced in non-OPEC countries including Brazil, Canada, Guyana, and Norway has increased recently.

According to Goldman Sachs, a lower production peak will be the consequence of expected lower pricing for the rest of 2025 and 2026 due to supply glut. This low high is expected to be reached sometime around 2027, according to a number of business professionals. According to prominent firms like Occidental Petroleum and ConocoPhillips, U.S. petroleum production may plateau between 2027 and 2030.