John Deo

Goldman Sachs Warns of Downside Risks to Oil Prices in 2025-26

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    Posted by John Deo Mar 5 - Filed in General - #financialmodelingprep  - 18 views

    Goldman Sachs has revised its outlook on oil prices, citing potential OPEC+ production increases, weakening U.S. economic data, and escalating trade tensions as key downside risks.

    Goldman Sachs Oil Price Forecast

    The investment bank expects:

    • Brent crude to average $78 per barrel in 2025 and $73 in 2026
    • West Texas Intermediate (WTI) crude to average $74 per barrel in 2025 and $68 in 2026

    However, the bank noted that a larger-than-expected oil output increase by OPEC+ in April could push prices even lower.

    Key Factors Affecting Oil Prices

    \ud83d\udee2\ufe0f OPEC+ Production Increases

    • OPEC+ plans to increase oil production by 138,000 barrels per day in April
    • The group could extend production hikes beyond the expected four-month period, which may drive Brent prices into the low-to-mid $60s by end-2026

    \ud83d\udcc9 Weaker Demand Outlook

    • U.S. economic weakness could reduce oil consumption
    • China’s sluggish oil demand further pressures global demand forecasts
    • Trade tensions—especially Trump’s tariff threats—may disrupt global energy markets

    Market Monitoring Tools

    \ud83d\udd0d Stay updated on oil prices and market movements using:

    Investor Takeaway

    With OPEC+ output increasing, economic uncertainty, and trade risks, oil prices could face further downside in 2025-26. Investors should closely watch OPEC+ decisions, economic data, and demand trends for potential market shifts.