Goldman Sachs warns oil could hit $125 a barrel next year
Goldman Sachs warns Brent crude could average $125 next year.
The short version
- The projection depends on Gulf oil production staying low.
- Higher fuel costs mean your heating and delivery bills will rise.
Why it matters to you. For your business, every jump in crude goes straight into the cost of running delivery vans and heating the warehouse this winter.
Check the price at the pump before you fill up your work trucks this week. Goldman Sachs, the big Wall Street investment bank, just warned that global crude oil prices could average $125 per barrel in 2027 if supply disruptions continue in West Asia.
According to The Statesman, the grim outlook hinges on whether regional energy infrastructure can recover quickly from ongoing conflict. If Gulf oil production stays 5 million barrels per day below normal levels, prices will stay stubbornly high. But there is a wide gap in the forecasts.
Goldman Sachs also noted that if production rebounds past pre-conflict levels, prices could drop all the way back down to the $60 range. S&P Global Energy, the commodity market data provider, expects Brent crude to average $86 per barrel next year, raising its estimate by $5.
Meanwhile, refining bottlenecks and damaged transport routes from ongoing conflicts are slowing down fuel delivery worldwide. Global crude demand is expected to dip to 80.2 million barrels per day late this year, which might take some steam off the rally. Keep a close eye on your fuel surcharges.
Photo: Ajay Suresh, CC BY 4.0, via Wikimedia Commons
