This is Goldman’s second downward revision in a week, which gives the cuts additional weight as a directional signal rather than a knee-jerk reaction. The bring-forward of Persian Gulf export normalisation by a month, to end-July from end-August, is the mechanical driver of the forecast change and implies a more optimistic read on mine clearance, insurance and shipping logistics than much of the market commentary has suggested. Brent at $80 for Q4 2026 would still represent a meaningful premium to pre-war levels near $72, reflecting the residual uncertainty Goldman is building in. The 2027 average of $75 for Brent and $70 for WTI points to a sustained oversupply dynamic once inventories begin rebuilding, consistent with the multi-year normalisation timeline other analysts have flagged. For oil majors, the revision reinforces the rotation trade already underway.
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Goldman Sachs cut its Q4 2026 Brent forecast to $80 from $90 and its 2027 average to $75 from $80, bringing forward its Gulf export normalisation assumption to end-July after the US-Iran Hormuz deal.
Summary:
- Goldman Sachs lowered its Q4 2026 Brent crude forecast to $80 per barrel from $90, and its 2027 average Brent forecast to $75 from $80
- WTI forecasts were also cut, to $75 per barrel for Q4 2026 and $70 for the 2027 average
- The revisions follow President Trump’s announcement of an interim deal to lift the US naval blockade and reopen the Strait of Hormuz, with a formal signing scheduled for Friday
- Goldman now assumes Persian Gulf exports normalise to pre-war levels by end-July, one month earlier than its previous end-August assumption
- The bank flagged that full details of the agreement remain unclear, and the forecasts are based on the assumption of an orderly and timely implementation
- This is Goldman’s second downward revision to its oil price forecasts within a week
Goldman Sachs has cut its oil price forecasts for the second time in a week, bringing forward its assumption for Persian Gulf export normalisation and lowering its Brent and WTI targets across 2026 and 2027 in response to the US-Iran framework agreement announced by President Trump.
The bank now expects Brent crude to average $80 per barrel in the fourth quarter of 2026, down from a prior forecast of $90, and $75 per barrel across 2027, revised from $80. WTI is projected at $75 for Q4 2026 and $70 for the full year 2027. The mechanical trigger for the cuts is a one-month acceleration in Goldman’s assumed timeline for Gulf export normalisation, now pencilled in for end-July rather than end-August, reflecting a more optimistic read on the pace at which shipping, insurance and logistics constraints will ease following a formal deal signing.
Goldman acknowledged that the full terms of the agreement remain unclear, with the forecasts resting on an assumption of orderly and timely implementation. The revision is nonetheless significant as a second consecutive weekly cut from one of the market’s most closely watched commodity desks, reinforcing the directional move lower in price expectations that the peace framework has set in motion.
The 2027 forecasts are consistent with the broader analyst view that a sustained period of oversupply will be required before inventories rebuild to levels that justify materially lower prices
