Brent Will Decline Goldman Sachs

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Brent Will Decline Goldman Sachs

Brent Will Decline To $52 In 2026 - Goldman Sachs

The latest forecast from Goldman Sachs reveals that Brent crude oil will decline to $52 in 2026. According to Goldman Sachs, the oil benchmark index will decline to these levels by late 2026.

The overall forecast from Goldman Sachs is bearish, given that Brent crude oil is trading much higher than the forecasted levels. Goldman Sachs believes that the surplus of oil continues to grow, which will eventually send prices lower.

Increased Oil Supply In The Us Market

The bank added that it has become visible now that the oil market is shifting from deficit to surplus. This can also be confirmed by the official stock data, and that's something which will make the oil markets bearish.

The data also shows that inventories of OECD are rising at a much faster pace than the forecasts. In the upcoming quarters, this surplus will only grow and will cause an imbalance in the markets.

If we look at the US, the crude stocks are also touching weekly highs. From a consumer point of view, that's a good thing, and it will also help the overall economy.

However, lower oil prices will not be a welcome development for OPEC, OPEC+, and other oil-producing countries. Goldman Sachs also highlighted how the supply growth is coming from non-shale producers.

In addition, new output is also coming from Canada, Guyana, and Brazil. So, there's an increase in production while the demand side has yet to catch up.

So in a sense, the increased supply is coming from both shale and non-shale facilities, which makes the whole equation more complex.

In all of this, one key uncertainty is Russia, which is also a major oil producer. Goldman Sachs added that any shock from the Russian side could provide support for oil in the short term.

As for Russia, the bank believes that production will continue to face risks from internal challenges. This includes ageing equipment, expensive currency, and so on.

But despite all of this, the bank believes that Brent is on a bearish path and will be near $52 in Q4 2026.

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