Oil likely to hold near $76/bbl in 2025: Goldman Sachs

Oil tanks

Oil prices are expected to average $76 a barrel during the next year based on a moderate crude surplus and spare capacity among major producers, amid easing concerns over a potential disruption in Iranian supply, Reuters reported, citing Goldman Sachs.

"Overall, we still see the medium-term risks to our $70-85/bbl range as two-sided but skewed moderately to the downside on net as downside price risks from high spare capacity and potentially broader trade tariffs outweigh upside price," the US-based bank said in a note on Tuesday.

The lender added that there is a possibility prices could rise towards year-end as it sees Brent time spreads "underpricing physical tightness somewhat".

"Despite large global spare capacity and so far undisrupted Iran oil production, we don't think that a 2025 supply glut is a done deal," Goldman analysts said.