Brent crude could hit $140 a barrel in 2027, says Goldman Sachs
The investment bank raised its oil price forecasts due to elevated risks to global supplies and potential Middle East disruptions.
Goldman Sachs has increased its oil price projections, warning that Brent crude could reach $140 a barrel in 2027, according to a Reuters report cited by The Economic Times.
The bank raised its December forecast for Brent crude to $105 a barrel, up from the previous $90. It also increased its US West Texas Intermediate (WTI) crude forecast to $94 a barrel from $81.
For the year 2027, the bank lifted its average Brent projection to $88 a barrel from $80. Its WTI estimate for the same year rose to $78 a barrel from $73.
In an upside scenario, Brent could hit $140 and average $130 in 2027 if Gulf oil production stays 3.5 million barrels per day below its 2025 average.
The bank noted that intensified attacks on shipping and damage to oil infrastructure could drive prices higher. It also expects markets to factor in a higher geopolitical risk premium due to potential Middle East supply disruptions.
Goldman Sachs identified ongoing conflicts in the Middle East and between Russia and Ukraine as significant threats to global energy supplies.