Brent Crude Likely To Hit $90 Per Barrel In December 2026 Amid West Asia Supply Risks: Goldman Sachs

New Delhi, October 12, 2026 - Goldman Sachs predicts Brent crude oil prices could reach $90 a barrel in December 2026, up 6 percent from their previous forecast of $85. This projection is driven by ongoing supply-side risks from the conflict in West Asia, which keep a significant risk premium in time spreads. The increase in the forecast for December 2026 is due to continuing downside risks to supply, which are expected to slow the moderation in the risk premium that is currently estimated at just over $20.

However, the forecast for the following month is nearly 13 percent lower than the current price of around $103 per barrel. Goldman Sachs' 2027 average Brent forecast remains unchanged at $80 per barrel. The bank's estimate considers downside risks to supply, low inventories, and the sensitivity of interest rates to oil, which support physical restocking and financial hedging.

The report also states that West Texas Intermediate (WTI) could average $81 in December 2026 and $73 in 2027. This reflects unusually wide WTI-to-Brent spreads, driven by high US-to-Europe shipping costs. The West Asia conflict began in late February, with Brent crude prices soaring from around $70 per barrel to over $125 per barrel due to disruptions in shipping through the Strait of Hormuz, which handles nearly 20 percent of the world's oil shipments.

As the conflict gradually reopened, crude prices moderated to pre-war levels before climbing back to test the $100 per barrel mark.