New Delhi, April 27: Amid escalating tensions in the Middle East, American investment bank Goldman Sachs has once again revised its forecast for crude oil prices for the fourth quarter of 2026.
The bank anticipates that between October and December this year, the average price of Brent crude will be around $90 per barrel, while West Texas Intermediate (WTI) crude is expected to average $83 per barrel.
This adjustment in average prices is attributed to ongoing tensions that continue to disrupt crude oil supply from the region. Previously, Goldman Sachs had projected an average price of $80 per barrel for Brent crude and $75 per barrel for WTI in the fourth quarter of 2026.
In its report, the investment bank noted that due to the tensions, approximately 14.5 million barrels of crude oil per day have been taken off the market from the Middle East.
As a result, global oil inventories have seen a significant decline of 11 to 12 million barrels per day in April alone, marking one of the fastest drops in energy market history.
Goldman Sachs highlighted a drastic shift in the global oil market balance, indicating that the crude oil market has transitioned from a surplus of 1.8 million barrels per day in 2025 to a deficit of 9.6 million barrels per day in the second quarter of 2026.
The bank estimates that global oil demand will decrease by 1.7 million barrels per day in the second quarter of 2026, with an overall decline of only 0.1 million barrels per day for the entire year.
However, following a ceasefire between the U.S. and Iran, Goldman Sachs has lowered its forecast for Brent crude in the second quarter of 2026 from an average of $99 per barrel to $90 per barrel, and for WTI from $91 per barrel to $87 per barrel.
This reduction reflects a decrease in geopolitical risk premiums and an improvement in distribution flows through the Strait of Hormuz.
Nevertheless, the forecast for Brent crude in the third quarter of 2026 remains unchanged at $82 per barrel, while WTI is also steady at $77 per barrel.
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My name is Narendra Jijhontiya. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including TECHNOLOGY, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
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