Could Oil Prices Surge Another 50%? Goldman Sachs Raises Forecast

Oil prices could face further upside as disruptions to Middle East shipping are expected to persist into 2027.

Goldman Sachs has raised its 2026 and 2027 oil price forecasts by $5 per barrel. The bank now expects Brent to reach $85 and WTI $80 by December 2026, while its 2027 forecasts stand at $80 for Brent and $75 for WTI.

The bigger question is whether oil could climb much further. In a severe supply disruption scenario, Brent could potentially move toward $120 per barrel, which would represent an increase of around 50% from current levels.

However, Goldman’s base case remains more moderate. OECD commercial oil inventories have barely declined since the conflict began, suggesting that the actual supply shortage may be smaller than initially feared.

For now, the oil market remains caught between geopolitical supply risks and relatively resilient global inventories. Any further disruption to Middle East shipping could quickly shift that balance.

With Brent and WTI remaining sensitive to geopolitical headlines and supply developments, oil could stay one of the markets to watch closely in the months ahead.