Oil Prices Expected to Decline Further in 2026 According to Wall Street Banks

Oil prices continue their downward trajectory as major Wall Street banks project sustained pressure on the market through 2026, following what has been described as the worst year since the COVID-19 pandemic.

According to average forecasts from Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley, Brent crude futures are expected to fall to around $59 per barrel in 2026, compared with current levels near $62, after posting an annual decline of about 17%.

The outlook reflects growing caution in global markets, with analysts anticipating a surplus of approximately 2.2 million barrels per day next year as global supply outpaces demand growth, adding further pressure on oil prices.

These surplus estimates are lower than those of the International Energy Agency, which forecasts a potential oversupply of nearly 4 million barrels per day.

However, the agency also notes that production adjustments by major producers could help mitigate the scale of the glut.

Goldman Sachs stands out as the most bearish, projecting Brent crude at around $56 per barrel, while Citigroup offers a more moderate outlook at roughly $62, highlighting differing views on the pace of recovery in the global energy market.

Production policies among key oil-producing nations, along with global economic performance, are expected to play a decisive role in shaping market dynamics, as investors look for signals that could restore balance to the energy sector.