Goldman Sachs has increased its Brent crude oil price forecast for December 2026 to an average of $105 per barrel, up from its previous estimate of $90, citing growing risks to global oil supplies.
The revised forecast represents an increase of nearly 17%. The bank has also raised its 2027 average Brent price outlook to $88 per barrel from $80.
Other major financial institutions have also issued higher oil price projections. ANZ expects Brent crude to reach $105 per barrel by the end of 2026, while UBS forecasts prices of around $110.
The higher estimates come despite reports that oil flows from the Persian Gulf have returned to pre-war levels. Analysts believe that prolonged disruptions in Middle Eastern supplies have weakened the market’s ability to absorb further shocks.
Goldman Sachs analyst Daan Struyven said a sustainable diplomatic agreement between the United States and Iran would be needed to quickly remove the additional risk premium from oil prices. However, the chances of a deal by the end of the year remain uncertain despite recent diplomatic contacts.
Higher crude oil prices could create additional pressure on Pakistan, which relies heavily on imported petroleum products. A rise in international oil prices may make it harder for the government to maintain domestic petrol and diesel prices without further adjustments to taxes and levies.
