Brent crude oil prices may fall below $50 by late 2026

Goldman Sachs expects Brent crude futures to fall below $50 a barrel by late 2026 due to increased oversupply.

The bank explained in a note to clients that it expects the oil oversupply to expand to an average of 1.8 million barrels per day in the fourth quarter of this year and through the same period next year, pushing global inventories up by about 800 million barrels by the end of 2026.

The American bank also believes that oil inventories in OECD countries will constitute one-third of the total global inventory, equivalent to 270 million barrels in 2026.

It explained that this inventory, coupled with declining demand in OECD countries, will cause the fair value of Brent crude to decline from its current level of above $70