Excess oil will increase and will lead to an increase in world stocks of nearly 800 million barrels by the end of 2026.
Goldman Sachs Investment Bank expects Brent oil prices to fall to $ 50 per barrel by the end of 2026 due to an increase in excess oil. Reuters writes about this on Wednesday, August 27th.
“We hope the excess oil will grow and on average will be 1.8 million barrels per day in the IV quarter of 2025 to the IV quarter of 2026, which will lead to nearly 800 million barrels of rising world stocks by the end of 2026,” the bank said.
Goldman Sachs calculates that oil reserves in OECR countries will be a third of world stocks, or 270 million barrels in 2026. At the same time reducing demand in these countries, it will reduce Brent’s “fair” cost from the current average of $ 70.
The bank foretold that Brent prices remain close to futures contracts until the end of 2025, but will fall under these contracts in 2026 due to the accelerated growth of reserves in the OECR.
At the same time, China’s possibly accelerated growth reserves from 0.4 million barrels per day to 0.8 million barrels per day to 2026 will increase Brent’s average price by $ 6 per barrel up to $ 62, compared to the base scenario.
In the morning in Asia on Wednesday, Brent Futures were about $ 67 per barrel, $ 63 in West Texas Intermediate.
Keep in mind that Russian oil taxes associated with oil last month reduced by about 33% to 710.4 billion rubles.
To OPEC+ will come up with an increase in oil production
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Source: korrespondent
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