Goldman Sachs Warns Of Limited Oil Supply Options For Next US Administration

The Goldman Sachs Group, Inc. GS reportedly stated that the winner of the U.S. presidential election in November will have limited options to significantly increase domestic oil supply next year.

What Happened: The bank noted that low strategic petroleum reserve stocks and potential regulatory easing are unlikely to significantly boost U.S. oil supply in the short term, though they could impact long-term supply.

Oil prices edged up on Friday following U.S. economic data that exceeded analyst forecasts, boosting investor expectations for higher crude oil demand from the world’s largest energy consumer.

Brent crude futures for September were trading around $82 per barrel, while U.S. West Texas Intermediate crude for September was about $78.

Goldman Sachs forecasts Brent prices will range from $75 to $90 in 2025, assuming steady GDP growth, stable oil demand, and market balancing by OPEC and its allies.

Tariffs could lower oil prices by up to $19 if the Federal Reserve delays interest rate cuts past 2025 due to high core inflation. Brent could fall to $62 in Q4 2025, vs. the current forecast of $81.

The bank added, “While there is a lot of uncertainty about trade policy, tariffs on U.S. crude imports seem unlikely.”

See Also: Goldman Sachs To Launch 3 Tokenization Projects That ‘Will Change The Nature Of Investment’

Why It Matters: For the past six years in a row, the U.S. produced more crude oil than any nation at any time, according to International Energy Statistics.

Investors can gain exposure to the stock via IShares U.S. Broker-Dealers & Securities Exchanges ETF IAI and Global X Funds Global X Dow 30 Covered Call ETF DJIA.

What’s Next: Goldman Sachs predicts oil prices could drop by up to $11 per barrel next year due to weaker demand and GDP, particularly if the U.S. imposes a 10% tariff on goods imports.

Price Action: GS shares are up 0.37% at $493.52 premarket at the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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