Goldman Sachs Forecasts Oil Prices At $76 In 2025

10/23/2024 10:19:21 AM

(MENAFN- Yolo Wire) U.S. investment bank %GoldmanSachs (NYSE: $GS) forecasts %Oil prices will average $76 U.S. per barrel in 2025 based on a moderate crude surplus and spare capacity among global producers.

Analysts at Goldman Sachs also see concerns of disruptions in the Middle East, particularly Iran, easing over the coming year.

However, the bank said there is a possibility that prices could rise towards year-end 2025 as its analysts said, “We don't think that a 2025 supply glut is a done deal."

In its 2025 analysis, Goldman Sachs said that any geopolitical risk premium for crude oil is likely limited as Israel-Iran tensions have not impacted oil supplies in the Middle East.

Goldman Sachs added that spare capacity remains high among producers in the OPEC+ oil cartel.

However, the bank did concede that supply risks will persist as long as the military conflict in the Middle East remains ongoing, and potential disruptions could tighten oil balances.

Brent crude oil, the international standard, is currently trading at $75 U.S. per barrel, while West Texas Intermediate (WTI) crude oil, the U.S. benchmark, is at $70.68 U.S. a barrel.

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