Business EconomyPosted at: Oct 12 2026 1:22PM


Brent Crude may hit $125 in 2027 if oil supply disruptions deepen: Goldman Sachs

New Delhi, Oct 12 (UNI) Global crude oil prices could remain elevated through 2027, with the outlook hinging on the extent of supply disruptions in West Asia, damage to energy infrastructure and the pace at which oil production recovers from the ongoing conflict, according to projections by Goldman Sachs and S&P Global Energy.
Goldman Sachs has outlined a scenario in which Brent crude could average around $125 per barrel in 2027 if average Gulf oil production remains 5 million barrels per day (mb/d) below February 2026 levels. This compares with the investment bank’s base-case assumption of production remaining 0.3 mb/d below the February benchmark. Further damage to oil infrastructure, increased attacks on shipping and a prolonged geopolitical risk premium could push prices higher, its analysts said.
However, a faster recovery in production could significantly ease the pressure on oil prices. Goldman Sachs said Brent could fall into the $60-per-barrel range in 2027 if average Gulf output rises 1 mb/d above February 2026 levels, highlighting the extent to which the market outlook depends on the trajectory of West Asian supply.
S&P Global Energy also expects crude prices to remain broadly within the $80-$100-per-barrel range through 2027. It has raised its forecast for Dated Brent to around $90 per barrel or higher for the remainder of 2026, while projecting an average of $86 per barrel in 2027, an increase of $5 from its previous estimate.
The agency noted that constraints in global refining capacity are acting as a counterweight to the upward pressure on crude prices. Damage to refineries and difficulties transporting petroleum products to international markets amid the Russia-Ukraine war and the US-Iran conflict have reduced refining output, affecting the broader oil market.
S&P Global Energy expects global crude oil demand in the fourth quarter of 2026 to reach 80.2 million barrels per day, down 4.7 million barrels per day from the corresponding period a year earlier. The weaker demand outlook could limit the extent of any sustained price rally, even as supply-side risks persist.
Meanwhile, the recovery in West Asian oil production is expected to remain prolonged. S&P Global Energy estimates that the region's crude output is unlikely to return to pre-war levels by the end of 2027, suggesting that supply constraints could continue to influence prices well beyond the immediate conflict.
Goldman Sachs has separately raised its December 2026 Brent crude forecast by 6% to $90 per barrel from its earlier estimate of $85. The revision reflects concerns that continuing supply risks associated with the West Asia conflict could delay the expected easing in prices. The revised projection remains nearly 13% below the prevailing price of around $103 per barrel.
The investment bank expects supply chains to gradually adjust to disruptions in West Asia, eventually helping bring crude prices lower. However, any renewed escalation in the conflict could keep prices elevated for longer. Goldman Sachs estimates that the risk premium embedded in the difference between near-term and future oil prices remains slightly above $20 per barrel, with continuing supply concerns likely to slow its decline.
UNI VK ATP AAB
Please log in to get detailed story.
Tags: #Brent Crude may hit $125 in 2027 if oil supply disruptions deepen: Goldman Sachs
More News

India & Europe must build a technology superhighway for mobility, says Nasscom's Kishor Patil

15 Oct 2026 | 9:44 PM

New Delhi, Oct 15 (UNI) Kishor Patil, Vice Chairperson of Nasscom and Co-founder, MD and CEO of KPIT Technologies, has called for India and Europe to build a "technology superhighway" for mobility, outlining a new model of cross-border innovation looking towards 2035, in which both regions jointly invest in emerging technology frontiers, scale software and validation capabilities, and develop solutions for global markets.

see more..

ADB, Japan back green ammonia plant in India with $100 million loan

15 Oct 2026 | 9:38 PM

Hyderabad, Oct 15 (UNI) The Asian Development Bank (ADB) and the Government of Japan have signed financing agreements with AM Green Ammonia (India) Private Limited to support the development of one of the world's largest renewable energy-powered green ammonia plants in India.

see more..

Switzerland targets year-round Indian tourists, ropes in Jemimah Rodrigues as ambassador

15 Oct 2026 | 9:32 PM

Bengaluru, Oct 15 (UNI) Switzerland Tourism has appointed Indian cricketer Jemimah Rodrigues as its Friendship Ambassador for India, seeking to attract more Indian visitors during autumn and winter and reduce the concentration of travel between April and June.

see more..

Heritage Foods Q2 revenue up 19 pc at Rs 1,319 6 crore; net profit down 39 pc

15 Oct 2026 | 8:04 PM

Hyderabad, Oct. 15 (UNI) Heritage Foods Limited on Thursday reported a 19 per cent year-on-year growth in consolidated revenue at Rs 1,319.6 crore for the second quarter ended September 30, 2026, while net profit declined 39 per cent to Rs 30.9 crore.

see more..

Cyient DLM Q2 revenue grows 26 5 pc to Rs 393 crore; order book at record high

15 Oct 2026 | 7:45 PM

Hyderabad, Oct. 15 (UNI) Cyient DLM , an integrated electronics manufacturing solutions partner for Design-Led Manufacturing, on Thursday reported a 26.5 per cent year-on-year growth in revenue at Rs 393.1 crore for the second quarter of FY27, while normalised profit after tax (PAT) increased 25.8 per cent to Rs 15.82 crore.

see more..