This year has seen the worst oil price performance since the pandemic, but Wall Street believes the sell-off is not over yet.

Currently, Brent crude futures are trading near $62 per barrel. Based on the average forecasts from Bank of America, Citigroup, Goldman Sachs, JPMorgan, and Morgan Stanley, prices could drop further to around $59 per barrel by 2026. The international benchmark has already declined by 17% this year.

According to the average projections from these five banks, the global crude market will face a supply surplus of approximately 2.2 million barrels per day next year.

Their estimated surplus is smaller than the forecast by the Paris-based International Energy Agency (IEA), which expects a record oversupply of 4 million barrels per day in 2026. However, production adjustments by oil-producing nations could reduce this surplus.

Among these institutions, Goldman Sachs holds the most bearish outlook, predicting an average annual price of $56 per barrel next year, while Citigroup is the most optimistic, forecasting $62 per barrel.

Goldman Sachs argues that delayed oil and gas projects during the pandemic will gradually come online, adding new supply to the market.

JPMorgan expects the actual oversupply may be smaller than it appears on paper, as the OPEC+ alliance—led by Saudi Arabia, which has partly contributed to the surplus—could shift policy and cut production by mid-next year.

Bank of America, meanwhile, anticipates that OPEC+ will resume production increases after pausing planned output hikes in the first quarter.