Goldman Sachs has downgraded its oil price forecast, pointing to potential OPEC+ production increases, deteriorating U.S. economic indicators, and rising trade tensions as main downside risks to the oil market.

Goldman Sachs Oil Price Forecast

The investment bank anticipates:
Brent crude averaging $78 per barrel in 2025 and $73 in 2026, with West Texas Intermediate (WTI) crude projected to average $74 and $68 respectively.

Key Factors Affecting Oil Prices:
OPEC+ may increase production by 138,000 barrels per day in April, potentially extending production hikes that could drive Brent prices down into the low-to-mid $60s by the end of 2026.

A weaker global demand outlook, including sluggish oil demand from China and faltering U.S. economic data, adds to price pressure. Trade tensions, focused on tariff threats, may further disrupt global energy markets.

Investor Takeaway:

OPEC+ decisions, economic indicators, and demand trends should be closely monitored as they may influence market shifts and oil prices through 2025-26.