Goldman Sachs Expects Brent Crude to Fall to $80/Barrel in Q4 as Prices Decline From $120

According to Goldman Sachs, oil prices have declined significantly over recent weeks, with Brent crude falling from over $120 per barrel in late April to approximately $72 currently. The bank's commodities team expects prices to reach $80 per barrel in the fourth quarter of 2026, with refining margins expected to remain elevated due to damage to Gulf and Russian production facilities.

Despite the anticipated price pressure, Goldman Sachs maintains an "overweight" rating on Japanese, South Korean, and Taiwan equities, as well as China's A-shares. The bank believes energy cost impacts on Asian economies will be more concentrated and shorter-lived than during 2021–2022, with inflation remaining manageable across most of the region.