Lates News

Goldman Sachs said that due to strong supply growth, oil prices may further decline next year, but there are several factors that could lay the foundation 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 raising their bids. Meanwhile, with the decrease in the number of active drilling rigs in the United States by 35% since the end of 2022, oil prices, if weak in the long term, may suppress shale oil production and tighten supply more quickly. The analysts at the bank also pointed out that if there is a large-scale supply glut 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 in the range of $50 per barrel.