Oil Prices Set for Further Decline in 2026, Wall Street Banks Forecast

Oil prices are facing mounting pressure as leading Wall Street banks forecast a continued downward trend through 2026, following what has been the market’s worst performance since the COVID-19 pandemic.

Average projections from Bank of America, Citigroup, Goldman Sachs, JPMorgan Chase, and Morgan Stanley suggest that Brent crude futures could fall to around $59 per barrel in 2026, from current levels near $62, after an annual decline of roughly 17%.

The outlook points to a global energy market surplus of about 2.2 million barrels per day next year, as worldwide supply growth is expected to outpace demand, adding further strain on oil prices.

These estimates remain below those of the International Energy Agency, based in Paris, which sees the potential for an oversupply approaching 4 million barrels per day, while also noting that producer adjustments could soften the impact.

Goldman Sachs appears the most bearish, projecting Brent crude at around $56 per barrel, whereas Citigroup maintains a more balanced view at approximately $62, underscoring differing expectations for the pace of recovery in the global energy market.

Production policies among major oil-producing nations, alongside global economic conditions, are expected to play a crucial role in shaping market trends, as investors watch closely for signs of renewed balance in the energy sector.