Analysts at Goldman Sachs Group Inc. say Brent crude oil prices could drop to just under $40 per barrel by the end of 2026. The forecast is based on slowing global economic growth and the potential end of OPEC+ production cuts.
According to Bloomberg, the American investment bank shared this outlook in a note dated April 7. The note says, “In a more extreme and less likely scenario with a global GDP slowdown and a full end to OPEC+ cuts, we estimate Brent could fall slightly below $40 a barrel by late 2026.”
However, this is not the bank’s main prediction. Goldman Sachs still expects Brent crude to be around $55 per barrel by December 2025, according to the report.
Bloomberg notes that problems in the global oil market have been fueled by trade tensions. The “tariff wars” launched during Donald Trump’s presidency and retaliatory actions by other countries have added pressure. These moves raised recession fears and reduced demand for energy.
Market Reaction
Despite recent concerns, oil prices rose more than 1% on Tuesday, April 8. This rebound followed a sharp decline that brought prices to near four-year lows. The earlier drop was driven by worries that U.S. tariffs could slow the economy and hurt oil demand.
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