Goldman Sachs anticipates higher oil prices through 2027
Goldman Sachs has increased its projections for oil prices, forecasting a rise in both December and 2027. The adjustments are attributed to heightened concerns about potential supply disruptions stemming from the ongoing conflicts in Russia and Ukraine, as well as tensions in the Middle East. Strategist Daan Struyven led the note explaining that traders are factoring in a greater risk premium, reflecting skepticism about achieving a significant diplomatic resolution.
“The Mideast and Russia-Ukraine conflicts, alongside broader geopolitical fragmentation, create high disruption risk,” Goldman stated. The firm now incorporates a 1 million barrel per day allowance for global supply disruptions in its 2027 base case, acknowledging the difficulty in predicting the timing and location of such events.
Goldman Sachs revised its December forecast for Brent crude to $105 per barrel, up from a previous estimate of $90. The forecast for West Texas Intermediate (WTI) crude was also raised to $94 per barrel. For 2027, the bank’s average forecasts now stand at $88 per barrel for Brent and $78 per barrel for WTI, compared to previous estimates of $80 and $73 per barrel, respectively.
Source
“Goldman raises oil price forecast for December and 2027. Here's why”
Read the original report ↗This story is an AI-assisted version of the original report, checked and edited by the Plainwire desk before publication. Read our editorial policy · Report an error
Read next
Election day energy prices soar despite Trump’s promises
During his re-election campaign, President Donald Trump pledged to lower gasoline prices below $2 per gallon within his first year in office. “My…
Related
Caught up in five lines
The Brief: the day’s biggest stories, written by our desk at and .