Goldman Sachs Slashed Crude Oil Price Forecast Due to Recession Fears

SEATTLE (Oil Monster): Goldman Sachs, a major investment bank, cut its 2026 crude oil price projections. Fears of a recession, a slowdown in demand, and an increase in production from OPEC+ producing nations are the primary reasons why prices are predicted to average below $58 per barrel. Additionally, it is anticipated that the benchmark U.S. WTI Crude oil would trade at about $55 per barrel in the upcoming year.

RELATED NEWS:

Goldman Sachs Sees Downside Risk to Oil Price View Amid Tariffs, Spare Capacity

JP Morgan Foresees Rebound in Oil Demand in Coming Weeks

The most recent oil price projection cut comes after a recent outlook cut in response to the announcement of U.S. tariffs. For the current year, the bank has reduced its oil demand growth prediction to about 300,000 barrels per day (bpd), which is half of the earlier estimate of 600,000 bpd.

In the meanwhile, the investment bank said that if the United States backs off from tariffs, oil prices are expected to climb from their current levels. Analysts predicted that in such a scenario, oil prices would surpass their projections.

The likelihood of a recession over the next year is now projected to be 45%, up from 35% in earlier predictions, according to Goldman Sachs. Capital spending is likely to be constrained by a number of factors, including a tighter financial situation and a persistent increase in policy uncertainty.