Monday

31-03-2025 Vol 19

Goldman Revises Oil Price Outlook Due to Slower Demand Growth and Increased OPEC+ Supply

Goldman Sachs has revised its oil price forecasts for December 2025 and the average for 2026, reflecting expectations of slower demand growth and increased supply from OPEC+. In a note released on Sunday, the investment bank reported that it anticipates Brent crude oil prices at $71 per barrel in December, a $5 decrease from its earlier prediction.

Additionally, WTI crude is now expected to reach $67 per barrel. For the year 2026, Goldman has lowered its average Brent forecast from $73 to $68, while the WTI forecast has been adjusted from $68 to $64.

The bank attributes these changes to an anticipated slowdown in oil demand growth, projecting an increase of only 0.9 million barrels per day (mb/d) in 2025, which is a downward revision from the previous estimate of 1.1 mb/d. This decline is largely linked to slower economic growth in the United States, exacerbated by higher tariffs.

Furthermore, Goldman Sachs notes that it expects a modest rise in OPEC+ supply. The bank now forecasts that OPEC+ production increases will begin in April, which is earlier than their previous expectation of July.

As of Monday at 2208 GMT, Brent crude futures were trading at $70.98, reflecting a 40-cent increase. Market dynamics continue to shift as analysts assess the interplay between demand trends and production strategies among oil-producing nations.

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