Goldman Sachs Lifts 2026 Oil Price Outlook on Tighter OECD Inventories

Goldman Sachs raised its fourth-quarter 2026 oil forecasts, citing lower OECD inventories despite maintaining expectations of a global surplus.

The bank increased its Brent outlook by $6 to $60 per barrel and WTI to $56 for the same period.

For full-year 2026, Goldman now expects Brent to average $64 and WTI $60, marking a significant upward revision.

Oil prices, however, slipped about 1% Monday as renewed U.S.-Iran nuclear talks eased concerns over potential supply disruptions.

Goldman maintained its projected 2026 surplus of 2.3 million barrels per day, assuming no major geopolitical shocks or Russia-Ukraine peace breakthrough.

The surplus reflects minor 0.2 million bpd downward revisions to both supply and demand amid slightly softer Asian growth.

Supply forecasts were cut for Kazakhstan, Venezuela, Iran, and Iraq, while output expectations rose for the Americas and core OPEC producers.

Goldman sees gradual OPEC+ production hikes in mid-2026 and warns of downside risks if sanctions relief boosts supply, though prices could reach $70 Brent by late 2027.

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