Goldman Sachs has lowered its December 2025 and average 2026 forecasts for Brent and WTI crude oil prices, citing slower oil demand growth prospects and expectations of higher OPEC+ supply.

The bank, in a note on Sunday, said it sees Brent at $71 per barrel in December, down $5 from its previous forecast, and WTI at $67. It also cut its 2026 average Brent forecast to $68 from $73, and WTI to $64 from $68.

Goldman Sachs now expects oil demand growth of 0.9 million barrels per day (mb/d) in 2025, down from 1.1 mb/d previously, incorporating slower U.S. GDP growth on higher tariffs.

It expects somewhat higher OPEC+ supply, with OPEC8+ production increases expected to start in April, compared to July previously.

Russia’s Deputy Prime Minister Alexander Novak said on Tuesday that Russia’s oil output is expected to be 515-520 million metric tonnes in 2025. The volume of oil processing would be higher this year compared to 2024, he added.

Novak believes that the global oil market is balanced now and that this situation will be maintained in April as the planned OPEC oil output rise of 100,000 barrels per day will not affect the market. 

Crude oil prices today 

Oil prices rose more than one per cent on Tuesday to their highest levels since the beginning of the month, supported by instability in the Middle East and China’s plans for more economic stimulus.

Brent futures climbed 84 cents, or 1.2 per cent, to $71.91 a barrel by 0911 GMT, while US West Texas Intermediate crude futures also rose 84 cents, 1.2 per cent, to $68.42.

Oil prices gained support from President Donald Trump’s vow to continue the US assault on Yemen’s Houthis unless they end their attacks on ships in the Red Sea. Trump said on Monday he would hold Iran responsible for any attacks carried out by the Houthi group that it backs in Yemen.

Meanwhile, Israeli air strikes in Gaza killed at least 200 people, Palestinian health authorities said, as attacks on Tuesday ended a weeks-long standoff over extending a ceasefire that halted fighting in January.

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