Goldman Sachs expects oil prices to average $76 in 2025

Oil drilling rigs

Goldman Sachs predicts Brent crude prices to average $80 per barrel this year, despite geopolitical uncertainties and supply shortages.

The US bank also expects the average Brent crude prices to reach $76 a barrel next year, but it lowered its 2026 forecast to $71, anticipating a surplus of 0.9 million barrels per day.

However, Goldman Sachs pointed in a note issued on Thursday to potential upward risks for prices in the short term, with the possibility of prices rising to the $85 range in the first half of 2025, if Iranian supply drops by 1 million barrels per day due to more stringent sanctions.

As for oil demand, the bank expects it to continue growing for another decade, driven by rising overall energy demand alongside GDP growth, and the ongoing challenges of reducing carbon emissions in the aviation and petrochemical sectors.