Goldman Sachs Expects No Change in Oil Prices Next Year

Goldman Sachs expects Brent crude to average between $70 and $85 per barrel next year, citing high spare production capacity as factor for keeping a lid on prices, regardless of the actual physical supply situation. In a recent update, the investment bank noted the perception of an oversupplied market among traders as one reason for its price forecast, which sees the average for Brent crude at $76 for 2025. It added, however, that the downward potential for prices is just as limited, citing the “price elasticity of OPEC and shale supply”.…