RIYADH: Goldman Sachs revised its yearly average price projections for Brent and West Texas Intermediate crude in 2026 due to recession risks and the potential for higher-than-expected OPEC+ supply. According to a letter dated April 6, the Wall Street firm reduced its 2026 average price prediction for WTI to $55 and for Brent by $4 to $58 per barrel.
This change comes after the bank already lowered its 2026 projection for WTI to $59 and Brent to $62. Additionally, Goldman Sachs warned that these updated estimates might be further adjusted downward.
This is consistent with the company’s decision to increase the probability of a US recession from its estimated 35 percent to 45 percent over the following 12 months. The change underscores mounting worries about a trade war spurred by US President Donald Trump’s high tariffs.
In a recently issued note, Goldman Sachs stated, “If the Administration were to drastically reverse tariffs and send a comforting message to markets, consumers, and businesses, oil prices would probably surpass our forecast.
As trade tensions have escalated, other investment banks have updated their projections. According to Goldman Sachs, a substantial tightening of financial conditions and increased policy uncertainty are anticipated to further curtail capital spending below initial estimates.
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