Goldman Sachs Warns of Downside Risks to Oil Prices in 2025-26

Goldman Sachs has revised its outlook on oil prices, citing potential OPEC+ production increases, weakening U.S. economic data, and escalating trade tensions as key downside risks.

Goldman Sachs Oil Price Forecast

The investment bank expects:

• Brent crude to average $78 per barrel in 2025 and $73 in 2026
• West Texas Intermediate (WTI) crude to average $74 per barrel in 2025 and $68 in 2026

However, the bank noted that a larger-than-expected oil output increase by OPEC+ in April could push prices even lower.

Key Factors Affecting Oil Prices

🛢️ OPEC+ Production Increases

• OPEC+ plans to increase oil production by 138,000 barrels per day in April
• The group could extend production hikes beyond the expected four-month period, which may drive Brent prices into the low-to-mid $60s by end-2026

📉 Weaker Demand Outlook

• U.S. economic weakness could reduce oil consumption
• China's sluggish oil demand further pressures global demand forecasts
• Trade tensions—especially Trump's tariff threats—may disrupt global energy markets

Market Monitoring Tools

🔍 Stay updated on oil prices and market movements using:

• Commodities API - Track real-time oil price fluctuations
• Economics Calendar API - Monitor key economic indicators affecting oil demand

Investor Takeaway

With OPEC+ output increasing, economic uncertainty, and trade risks, oil prices could face further downside in 2025-26. Investors should closely watch OPEC+ decisions, economic data, and demand trends for potential market shifts.