Goldman Sachs Sees Oil Prices Plummeting to $85 by December

Goldman Sachs has raised its forecast for Brent crude oil prices to $85 per barrel by December, citing persistent energy-supply disruptions in the Middle East. The bank's higher forecast implies a significant retreat from current levels, suggesting that Goldman expects geopolitical risk premiums to fade rather than oil's recent surge to persist.

The forecast adjustment follows months of disrupted supplies and restricted flows through the Strait of Hormuz, which have left energy-importing Asian economies particularly exposed. Brent prices have remained near $100 even as Saudi exports improved and diplomatic developments briefly eased supply fears.

Goldman expects higher energy costs to show up more clearly in September import and producer prices across Asia-Pacific economies. Consumer inflation should see a smaller immediate impact because subsidies and regulated prices in several countries cushion households from the full increase.