Goldman Sachs(US:GS) Huan Qiu Wang·2026-01-13 03:00Group 1 - Goldman Sachs reports that global oil supply increase is leading to market oversupply, which may pressure oil prices downward this year, despite ongoing geopolitical risks causing market volatility [1][3] - The firm maintains its price forecasts for Brent and WTI crude oil at $56 and $52 per barrel for 2026, respectively, expecting prices to bottom out at $54 and $50 per barrel in Q4 due to rising inventories [1][3] - Brent crude futures are currently around $63 per barrel, while WTI is stable at $59 per barrel, with both benchmarks experiencing nearly a 20% decline in 2025, marking the worst annual performance since 2020 [3] Group 2 - Goldman Sachs indicates that unless there are significant supply disruptions or OPEC implements production cuts, oil prices are expected to decline in 2026 due to a projected surplus of 2.3 million barrels per day [3][4] - The firm anticipates a gradual recovery in oil prices by 2027, with Brent and WTI averages forecasted at $58 and $54 per barrel, respectively, down by $5 from previous estimates due to increased supply expectations from major oil-producing countries [4] - Long-term projections suggest that global oil demand will continue to grow until 2040 due to insufficient long-term investments, with significant price increases expected in the late 2030s, reaching averages of $75 and $71 per barrel for Brent and WTI, respectively, between 2030 and 2035 [4]