Goldman Sachs has revised its Brent crude oil price forecast downward, citing a slowdown in demand from China due to the rising popularity of electric vehicles (EVs). The shift towards EVs has significantly impacted the demand for traditional fossil fuels in the world’s largest oil-importing nation.
Additionally, oil prices are under pressure from unexpected increases in U.S. oil production, driven by improved production efficiencies. As a result, Goldman Sachs has reduced its Brent crude price forecast by $5, now expecting it to range between $70 and $85 per barrel. The bank also adjusted its 2025 average Brent crude price prediction to $77 per barrel, down from the previous estimate of $82 per barrel.
Goldman Sachs also commented on the short-term impacts of the ongoing conflict in Libya. The turmoil has led to a reduction in oil supply, with output expected to decrease by 600,000 barrels per day in September and 200,000 barrels per day in October. This reduction follows the decision by the eastern Libyan government, based in Benghazi, to halt oil production and exports amid a power struggle with the internationally recognized government in Tripoli over control of the Central Bank of Libya.
