BlockBeats News, June 12, Goldman Sachs lowered its 2027 Brent crude oil price expectation to $80 per barrel in its latest report, citing ongoing global oil supply expansion and weak demand performance as the main reasons.

Goldman Sachs pointed out that oil-producing countries such as the United States, Brazil, Guyana, Venezuela, and the UAE have significantly increased production. At the same time, China's energy structural transformation is accelerating, reshaping the global oil demand growth trajectory.

Despite the downward revision of the long-term outlook, the bank still maintains a relatively strong outlook for medium-term oil prices, with the average Brent crude oil price expected to be around $90 per barrel in the fourth quarter of 2026.

Regarding the supply shock, Goldman Sachs believes that the recent transportation disturbances around the Strait of Hormuz have had a lower-than-expected impact, and although the global supply gap has widened at one point, it has been partially offset by weak demand and structural oversupply. The bank expects Gulf countries' crude oil exports to gradually return to normal by the end of August and has revised its earlier timeline for recovery.

However, Goldman Sachs also emphasized that geopolitical risks could still trigger extreme volatility. In an adverse scenario, if exports remain blocked, the Brent oil price could soar above $110 by the end of 2026.

In an extreme scenario, such as a year-long blockade of the Strait of Hormuz, Goldman Sachs believes that oil prices could even rise to $140 per barrel. On the flip side, if supply quickly recovers and demand further weakens, oil prices could fall to around $70 and further decline to $60 by 2027.