(Oil & Gas 360) – Goldman Sachs has raised its oil price forecasts for the remainder of 2026 and 2027, warning that persistent geopolitical tensions and the possibility of renewed supply disruptions could keep crude prices elevated despite recovering petroleum production in the Middle East.
The investment bank increased its December 2026 Brent crude forecast to $105 per barrel from $90, a nearly 17% upward revision. Its West Texas Intermediate forecast rose to $94 per barrel from $81.
Goldman also raised its average 2027 Brent forecast to $88 per barrel from $80 and its WTI projection to $78 from $73, reflecting expectations that geopolitical uncertainty will continue influencing global petroleum markets.
The revised outlook follows months of disruptions to Middle Eastern oil production and transportation associated with the conflict involving Iran, alongside continued threats to energy infrastructure and commercial shipping.
Although regional production has been recovering, Goldman expects the market to maintain a substantial geopolitical risk premium because of uncertainty surrounding future supply interruptions.
Analysts led by Daan Struyven and Yulia Zhestkova Grigsby incorpora...