Goldman Sachs predicts oil prices will average $56 (Brent) and $52 (WTI) in 2026 due to a global supply surplus.

Goldman Sachs forecasts lower oil prices in 2026, predicting an average of $56 for Brent and $52 for WTI crude, driven by a projected 2.3 million barrels per day global supply surplus from rising non-OPEC output, particularly from the U.S., Venezuela, and Russia. Despite geopolitical tensions in Russia, Venezuela, and Iran, the bank sees no near-term OPEC production cuts, expecting prices to bottom at $54 and $50 respectively by year-end. A gradual recovery is anticipated in 2027, with Brent and WTI averaging $58 and $54, though revised down due to stronger supply outlooks. Long-term, prices could reach $75 and $71 by 2030–2035 amid sustained demand and underinvestment. The firm warns of downside risks from continued non-OPEC supply growth and recommends hedging and shorting Brent time spreads through 2028.