Goldman Sachs Raises Brent Crude Oil Price Forecast To $90 For December

Goldman Sachs has increased its December 2026 Brent crude oil price forecast by approximately 6% to $90 per barrel from $85, citing persistent supply risks arising from the West Asia conflict.

The revised estimate remains nearly 13% below current prices of approximately $103 per barrel.

As per a report by Business Standard, Goldman Sachs analysts in a report said disruptions to regional oil supplies and continuing geopolitical uncertainty could slow the expected decline in crude prices.

The bank estimates that the current risk premium in oil markets exceeds $20 per barrel.

Goldman Sachs maintained its average Brent crude forecast for 2027 at $80 per barrel, expecting gradual recovery in Gulf oil supplies to offset persistent geopolitical risks.

For West Texas Intermediate (WTI) crude, the bank projected prices of $81 per barrel in December 2026 and $73 in 2027.

However, analysts warned that Brent could average approximately $125 in 2027 if Gulf production remains five million barrels per day below February 2026 levels.

Infrastructure damage, shipping attacks and prolonged supply disruptions could contribute to such an outcome.

Conversely, Brent could fall into the $60-per-barrel range if regional output recovers faster than anticipated.

Oil prices had surged above $125 following the outbreak of the West Asia conflict in late February, compared with approximately $70 before hostilities began.

Disruptions around the Strait of Hormuz, a major global oil transportation route, contributed to the increase.

S&P Global Energy also expects crude prices to remain broadly between $80 and $100 per barrel through 2027.

It projects Dated Brent averaging approximately $90 or higher during the remainder of 2026 and $86 in 2027.

The agency expects fourth-quarter 2026 global crude demand to reach 80.2 million barrels per day, down 4.7 million from a year earlier.

Limited refining capacity and geopolitical disruptions continue to influence market conditions.

S&P Global Energy estimates West Asian crude and condensate exports could average 10 million to 16 million barrels daily through 2027, compared with approximately 20 million before the conflict.

Its outlook assumes continuing regional uncertainty rather than a definitive resolution of the conflict.