Goldman Sachs has revised its oil price projections for December 2025 and the average for 2026, reflecting a shift in demand expectations and anticipated increases in OPEC+ supply. In a recent note, the financial institution now predicts that Brent crude will trade at $71 per barrel in December, a reduction of $5 from earlier forecasts, while WTI crude is expected to settle at $67. This adjustment comes as the bank lowers its average Brent price forecast for 2026 from $73 to $68, and WTI from $68 to $64.
Demand Growth Expectations Shift
Goldman Sachs now projects that the growth in oil demand will reach 0.9 million barrels per day (mb/d) in 2025, down from the previously estimated 1.1 mb/d. This downgrade is attributed to a slowdown in U.S. GDP growth, exacerbated by rising tariffs.
- Key Adjustments:
- Brent crude forecast for Dec 2025: $71 (previously $76)
- WTI crude forecast for Dec 2025: $67
- Average Brent for 2026: $68 (previously $73)
- Average WTI for 2026: $64 (previously $68)
OPEC+ Supply Outlook
The bank also indicated an expectation of increased supply from OPEC+, predicting that production hikes will commence in April instead of July, which was the previous estimate. This anticipated surge in supply, combined with weaker demand growth, is likely to have a significant impact on oil prices moving forward.
As of 2208 GMT on Monday, Brent crude futures were trading at $70.98, reflecting a slight increase of 40 cents.
With these adjustments, Goldman Sachs emphasizes the evolving landscape of the oil market and the factors that could influence future pricing. Stakeholders should remain vigilant to shifts in both demand and supply dynamics as they navigate this complex industry.
