Oil prices are predicted to drop further in 2026, with WTI Crude expected to average $53 per barrel, according to Goldman Sachs. Currently, WTI Crude is trading just above $60 per barrel.

Goldman Sachs advises investors to short oil as prices are expected to decline further next year. The market is currently experiencing a surplus, with global stocks increasing by 2 million barrels per day in the last 90 days.

In 2026, a surplus of 2 million barrels per day is expected, marking the last year of the current big supply wave. Low WTI prices in the low $50s per barrel will slow U.S. shale capex and production growth, eventually rebalancing the oil market.

The oil market is projected to rebalance in 2027, following the last big oil supply wave in 2026. Supply growth in the long term is expected to come mostly from OPEC, with some modest growth from the U.S. shale patch.

Goldman Sachs revised up their global oil demand numbers, expecting demand to grow until at least 2040. By 2040, oil demand could reach 113 million bpd, compared to 103.5 million bpd in 2024 and a previous prediction of oil demand peaking in 2034.

Read more at Yahoo Finance: Oil Prices To Drop to $53 In 2026