Goldman Sachs raises oil price forecast to $105

The bank raised its December Brent crude price forecast from $90 to $105 per barrel and increased its average price projection for 2027 from $80 to $88. Forecasts for West Texas Intermediate (WTI), the U.S. oil benchmark, were also raised. Brent crude gained 14% in October, reaching its highest level in six months amid geopolitical tensions in the Middle East.

Goldman Sachs analysts warned that tensions between the United States and Iran could escalate again following the November 3 U.S. midterm elections, potentially triggering disruptions to oil supplies. The bank incorporated an assumption of a 1 million barrel-per-day reduction in global oil supply into its baseline scenario for 2027. Attacks on maritime shipping, damage to energy infrastructure, and risks stemming from the Russia-Ukraine war could place further upward pressure on oil prices. Morgan Stanley and ANZ Group have also issued Brent crude price forecasts of $105 per barrel.