Goldman Sachs trims oil price forecasts on ceasefire

GOLDMAN SACHS GROUP INC has lowered its oil price forecasts for the second quarter of 2026 following the announcement of a two-week ceasefire between the United States and Iran. The bank now expects Brent Crude Oil to average $90 per barrel, down from its previous projection of $99. Similarly, the forecast for WT WTI CRUDE OIL has been adjusted to $87 per barrel from an earlier estimate of $91.

Oil markets have experienced significant volatility this week. Brent prices dropped by more than 11% as news of the ceasefire raised hopes for the reopening of the Strait of Hormuz. However, prices saw a slight recovery on Thursday as concerns persisted regarding the stability of the ceasefire and the potential for continued restrictions in the critical Middle Eastern shipping lane.