Oil Price Forecasts Diverge as OPEC+ Maintains Production Targets
Oil price forecasts are diverging as OPEC+ maintains production targets for November. Goldman Sachs predicts Brent crude could drop to $85 per barrel by December, with further declines to $80 in 2027, citing recovering Gulf exports and adapting supply and demand. However, the bank notes that refined product exports remain below 50% of 2025 averages, and Middle Eastern LNG supplies are recovering more slowly than oil.
Bank of America also anticipates lower prices, projecting Brent to average $95 per barrel in the second half of 2026 and $80 in 2027, with West Texas Intermediate (WTI) averaging $74 in 2027. BofA's outlook assumes intermittent disruptions in the Strait of Hormuz due to ongoing skirmishes.
Crédit Agricole presents a more conservative view, expecting oil prices to average between $90 and $95 per barrel through 2027. The bank highlights persistent shortages of refined fuels and the difficulty of replenishing depleted reserves while meeting demand, particularly without a lasting political resolution in the Middle East or Europe.
Despite the differing forecasts, all banks acknowledge the potential for further infrastructure damage and political escalation, which could significantly impact oil prices.