Goldman Sachs predicts that oil prices will strengthen again by 2027, following a decline next year due to oversupply, as lower prices suppress non-OPEC production while steady demand growth tightens the market.

The bank expects a surplus of 2 million barrels per day to weigh on oil prices until mid-2026, reflecting resilient global supply outside Russia.

Analysts including Daan Struyven, Yulia Grigsby, and Alexandra Paulus noted that by the second half of 2027, the market will shift to a supply deficit as low prices curb non-OPEC output while demand continues to rise.

This trend also signals market incentives for investment amid shrinking oil reserve life cycles, maturing U.S. shale resources, and robust demand growth.

Over the next two years, Brent crude could fall to the $40-per-barrel range if a recession occurs or non-OPEC supply remains strong. Conversely, a drop in Russian supply could push prices above $70 per barrel.

By late 2028, as non-OPEC supply slows after 15 years of underinvestment, oil prices are projected to rise toward Goldman Sachs' long-term forecasts of $80 for Brent and $76 for WTI.