Goldman Sachs Group Inc has cut its oil price forecasts, citing weaker US growth due to tariffs and increased output from OPEC and its allies.

The bank now expects Brent crude to reach US$71 per barrel in December, down US$5 from its previous estimate, while US benchmark West Texas Intermediate (WTI) is projected at US$67. Analysts, including Daan Struyven, noted in a report dated Sunday that Brent will trade within a US$65 to US$80 range and average US$68 next year.

“The medium-term risks to our forecast remain to the downside given potential further tariff escalation and potentially longer OPEC+ production increases,” the analysts stated.

Goldman has also revised its forecast for oil demand growth this year, lowering it by 18% to 900,000 barrels per day due to a slowing US economy driven by higher tariffs. Additional supply from OPEC and its allies has also contributed to a more balanced market.

Brent crude was trading around US$71 on Monday, having declined roughly 14% from its peak in January.

Bloomberg

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