Goldman Sachs lifts oil price forecasts

Goldman Sachs expects Brent crude to reach $71 per barrel in Q4 2026

Goldman Sachs raised its forecasts for oil prices in Q4 2026, citing expectations that disruptions to crude flows through the Strait of Hormuz will persist for a longer period amid the US-Israeli war on Iran.

The US bank now expects Brent crude to reach $71 per barrel in Q4 2026, up from its previous forecast of $66, while it raised its estimate for West Texas Intermediate (WTI) crude to $67 per barrel from $62.

In a note issued today, March 12, the bank’s analysts assumed that oil flows through the Strait of Hormuz would remain reduced for 21 days, falling to only 10% of normal levels, followed by a gradual recovery over 30 days. This contrasts with their earlier expectation of a disruption lasting just 10 days.

The bank added that oil prices could exceed their 2008 peak if reduced oil flows through the Strait of Hormuz persist until the end of March.