Brent & WTI Price Forecasts: Goldman Sachs Outlines Different Scenarios

Image Credit: REuters

Goldman Sachs has revised its price forecasts for Brent and WTI crude, predicting that by December 2025, Brent will be at $62 per barrel and WTI at $58, with further declines to $55 and $51 by December 2026. These projections are based on two assumptions: first, that the U.S. avoids a recession, aided by a significant reduction in tariffs set to take effect on April 9; and second, that supply from eight OPEC+ countries increases moderately, with two final production hikes of 130,000-140,000 barrels in June and July.

However, in a more typical U.S. recession scenario or under their OPEC baseline scenario, Goldman Sachs forecasts Brent could drop to $58 by December 2025 and to $50 by December 2026.

The bank also warned that oil prices could exceed these forecasts if there is a sharp reversal in tariff policies. On Monday, Goldman revised its 2026 price projections further downward, citing rising recession risks and the potential for higher-than-expected OPEC+ supply. 

With President Donald Trump's escalating tariff threats against China and the European Union's retaliatory measures, there are growing fears that a prolonged trade war could trigger a global recession. In a global economic slowdown scenario, while maintaining their OPEC baseline assumptions, Goldman estimates that Brent could fall to $54 by December 2025 and $45 by December 2026.

In the most extreme and unlikely scenario—one in which both global GDP slows down and OPEC+ cuts are fully reversed—Brent prices could plummet to just under $40 per barrel by late 2026.

As of Tuesday morning, Brent crude was trading around $64.72 per barrel, while WTI stood at $61.26.

 

 

 

 

Paraphrasing text from "Reuters" all rights reserved by the original author