By Giulia Petroni

Goldman Sachs lowered its oil price estimates for this year and next, saying it expects weaker global demand due to escalating trade tensions and higher OPEC+ supply.

"The two factors that previously limited downside risk to prices, that is low recession risk and OPEC's preference for low production when Brent neared $70/bbl, are no longer in place," analysts at the U.S. bank said.

Brent crude is now seen at an average of $69 a barrel from $73 a previously, while West Texas Intermediate is forecast at $66 a barrel from $69 previously. In 2026, the benchmarks are seen at $62 and $59 a barrel, respectively.

Goldman said it now expects global oil demand to grow by 600,000 barrels a day in 2025 and 700,000 barrels a day in 2026, from previous expectations of 900,000 barrels a day.

"The risks to our reduced oil price forecast are to the downside, especially for 2026, given growing risks of recession and to a lesser extent of higher OPEC+ supply," the analysts said.

In early European trade, Brent crude fell 2.6% to $68.34 a barrel, while WTI was down 2.7% at $65.14. Both contracts are poised for a weekly loss of more than 6% following U.S. President Trump's tariff blitz and OPEC+'s plans for a larger-than-expected output raise in May.

Write to Giulia Petroni at giulia.petroni@wsj.com

(END) Dow Jones Newswires

April 04, 2025 04:26 ET (08:26 GMT)

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