Goldman Sachs analysts have revised their outlook for global oil demand upwards, now expecting growth of 600,000 barrels daily this year and 400,000 barrels daily in 2026.
The bank, however, maintained its oil price forecast at $60 per barrel of Brent crude and $56 per barrel of West Texas Intermediate for this year, Reuters reported, citing a new note. Brent crude was trading at over $65 per barrel at the time of writing, and WTI was trading at over $62.
Goldman Sachs analysts have reportedly suggested that OPEC+ is likely to pause further oil production increases due to deteriorating global economic conditions. Goldman reportedly anticipates that OPEC+ will make a “final” decision in July to raise daily output by 411,000 barrels, but actual economic data may prompt a reassessment, according to @FirstSquawk, and lead to a halt beyond that.
Last February, oil field services giant Schlumberger Ltd (NYSE:SLB) discussed its newly carved SLB New Energy unit which will focus on niches such as carbon solutions, hydrogen, energy storage, geothermal/ geoenergy and critical minerals each with a minimum addressable market of $10 billion, as reported by Bloomberg NEF.
“The risks to our reduced oil price forecast are to the downside, especially for 2026, given growing risks of recession and to a lesser extent of higher OPEC+ supply,” Godman said in one of its earlier April notes, referring to the most expected outcome of the tariff war that President Trump started in early April. However, there is a good chance the war will end before it start hitting the global economy, eliminating the biggest risks as defined by Goldman Sachs and thus reducing the danger of a more serious oil price decline.
Goldman Sachs analysts predict Brent crude prices could temporarily surge to $93 per barrel if sanctions successfully curb oil exports from Iran and Russia by a combined 1 million barrels per day (bpd). In a note shared by Zerohedge on X, the bank outlined a scenario where Iran faces persistent supply disruptions while Russia experiences temporary setbacks, tightening global crude markets. With geopolitical tensions already pressuring supply chains, traders are watching for any policy shifts that could exacerbate the squeeze.
Italian major offloads a third of its shares in Italian contractor current, but still controls one fifth of company
Oil hit a four-month low, and Brent Crude prices slipped below $80 per barrel for the first time since early February.
Third-quarter demand and market balances could be tempting for a reversal of the cuts from October, but OPEC+ is likely to consider balances for Q4 and beyond.
ING analysts Patterson and Manthey: The sell-off in oil this week is overdone.
Investment bank Goldman Sachs says there will be no immediate major effect on near-term oil market inventories related to the terrorist attacks on Israel on Friday. Goldman Sachs has, however, added that the attacks lower the likelihood of normalization of Israel’s relations with Saudi Arabia, which would likely have boosted Saudi production over time.
This week, Goldman Sachs raised its oil price target to $100 again. The bank cited lower OPEC output combined with higher demand, which taken together, “more than offset significantly higher U.S. supply.”
The prospects of China’s oil demand and expected further economic stimulus in the world’s top crude importer have played the biggest role in the oil price rally in July, according to Goldman Sachs.