Goldman Sachs Says Oil Prices Will Drop

Goldman Sachs is a big bank that makes predictions about money and business. They just said oil prices will go down this year and next year.

Why do they think prices will drop? More oil companies outside of OPEC (a group of oil-producing countries) will make more oil. This doesn't include American shale oil companies, which have been slowing down because oil prices are already low.

Goldman thinks these other countries will produce 1 million more barrels of oil per day over the next two years. Saudi Arabia and Qatar are starting new projects that will make even more oil.

What prices do they expect?

• 2025: $60 per barrel for Brent oil, $56 for Texas oil

• 2026: $56 per barrel for Brent oil, $52 for Texas oil

Is everyone sure about this? Not really. Another bank called UBS looked at oil supplies and thinks the market might actually be more balanced than Goldman believes. UBS says there might not be as much extra oil as Goldman thinks.

Even though Goldman expects people to use more oil this year, they still think prices will fall because there will be too much oil available.