Goldman Sachs raises oil price forecasts, sees Brent upside at $140 a barrel
USO•Goldman Sachs raised its December Brent forecast to $105 a barrel from $90 and its WTI forecast to $94 from $81. It said Brent could reach $140 and average around $130 in 2027 if Gulf output stays 3.5 million barrels per day below its 2025 average.
1. Higher oil forecasts
Goldman Sachs raised its December Brent crude forecast to $105 a barrel from $90 and its West Texas Intermediate forecast to $94 from $81. It also lifted its average 2027 forecasts to $88 for Brent from $80 and to $78 for WTI from $73.
2. Upside scenario
The bank said Brent could reach $140 a barrel and average around $130 in 2027 if average Gulf output that year remains 3.5 million barrels per day below its 2025 average. It expects markets to price in a higher risk premium, citing downside risks to Middle East supply and doubts among market participants about a lasting diplomatic breakthrough.
3. Risks to supply
Goldman Sachs said intensified shipping attacks, damage to oil infrastructure and a more persistent risk premium are key triggers for potential upside. Brent slipped more than 1% to $111.84 on Monday after Iranian and Qatari officials held a third straight day of talks aimed at a deal to end the US-Israeli war with Iran.
