Goldman Sachs Raises Oil Price Forecasts Amid Ongoing Middle East Conflict

Goldman Sachs has increased its forecasts for Brent and West Texas Intermediate (WTI) crude oil prices, predicting that shipping disruptions in the Middle East will persist into next year. According to Reuters, the bank raised its price forecasts by $5 a barrel for December 2026 and 2027.

The bank cited expectations of continued supply losses due to the ongoing conflict in the region, which has resulted in reduced oil production in the Gulf. It noted that Brent crude could rise above $120 a barrel in 2027 if average oil production in the Gulf remains 4 million barrels per day below pre-war levels.

However, Goldman Sachs also outlined a lower-price scenario, predicting that Brent could fall into the $60s a barrel in 2027 if average Gulf oil production rises by 1 million barrels per day above pre-war levels. The bank pointed to limited drawdowns in OECD commercial oil inventories since the conflict began and its expectation that Middle Eastern producers would continue adapting supply flows.