'Oil prices may ease to $80 per barrel in 2027'
Goldman Sachs Research predicts that global crude oil prices could drop to around USD 80 per barrel by 2027, as improved Middle East supplies and higher production outside the Persian Gulf help balance the market. However, the bank warns that continued tensions between the US, Israel, and Iran could prevent prices from falling as quickly as expected.
The research firm currently expects benchmark Brent crude to average USD 80 per barrel in 2027, after initially forecasting USD 85 in December 2026. This downward revision comes after a significant narrowing of the global supply deficit, reaching just 0.3 million barrels per day (mb/d) by September, having dropped from a March deficit of 7.2 mb/d.
While the market is nearly balanced, Goldman Sachs notes that supply risks, such as the threat of further supply disruptions from the region-wide conflict, and strong demand for restocking depleted inventories continue to support elevated prices. Physical Brent crude prices for near-term delivery have even surpassed USD 130 per barrel, while benchmark Brent futures have recently traded above USD 100.
Demand for oil is also expected to remain subdued, with global oil consumption in the third quarter of 2026 down 3.3 mb/d year-on-year, primarily due to weak demand in China, the Middle East, and developed Asian economies. Goldman Sachs anticipates demand to gradually recover as refineries improve and electric vehicle adoption accelerates. However, global oil demand is still projected to be 0.7 mb/d below its pre-conflict trajectory by the end of 2027.
The bank's outlook hinges on the pace of supply recovery, demand normalization, and the risk of renewed regional escalation.
Written by urgent.news from The Economic Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
