Goldman Sachs: Due to strong supply growth, oil prices may further decline next year.

Goldman Sachs said that due to strong supply growth, oil prices may further decline next year, but there are several factors that could set the stage for an earlier rebound in oil prices. Typically, oil prices bottom out before inventories peak; once forward-looking traders see signs of supply and demand dynamics rebalancing, they will start to raise quotes. Meanwhile, with the active rig count in the United States already reduced by 35% from the end of 2022, if oil prices remain weak for a long time, it may suppress shale oil production, thereby tightening supply more quickly. Analysts at the bank also pointed out that if there is a large-scale oversupply in the fourth quarter of this year, OPEC may reverse its current policy and implement production cuts to stabilize the market. Currently, Goldman Sachs predicts that by the end of 2026, Brent crude oil prices will be at the low end of the $50 per barrel range.