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Goldman Sachs has indicated that the recent halt in oil production in Libya, which caused a surge in U.S. crude prices by over 3%, is expected to be temporary. The investment bank projects that Libya’s oil output will decrease by 600,000 barrels per day (bpd) in September, followed by a smaller reduction of 200,000 bpd in October. Despite these disruptions, Goldman remains cautious about the long-term impact on global oil prices.
In its latest report, Goldman Sachs has revised its Brent crude oil forecast downward, citing slower demand growth in China, which is increasingly driven by the adoption of electric vehicles. Additionally, U.S. oil supply has outpaced expectations due to efficiency improvements, further contributing to the downward pressure on prices.
Goldman now forecasts Brent crude to trade within a range of $70 to $85 per barrel, with an average of $77 per barrel expected in 2025, a decrease from its previous estimate of $82. The bank’s revised outlook reflects the complex interplay of short-term production disruptions and long-term shifts in global energy demand and supply.