Crude prices fell sharply after OPEC+ surprised markets with a bigger-than-expected production hike. This prompted Goldman Sachs to slash its oil price outlook and triggered a selloff in U.S. energy stocks.
In a note shared Monday, Goldman Sachs commodity analyst Daan Struyven said the bank lowered its oil price forecast by $2 to $3, projecting Brent and WTI to average $60 and $56, respectively, for the rest of 2025, and $56 and $52 in 2026.
“Our key conviction remains that high spare capacity and high recession risk skew the risks to oil prices to the downside despite relatively tight spot fundamentals,” Struyven said.
What Prompted The Oil Selloff?
West Texas Intermediate futures opened at $55.36 per barrel Sunday evening in New York before recovering slightly to $57.10 by early Monday morning.
The drop was fueled by OPEC+’s Saturday decision to increase production by 411,000 barrels per …