(Oil & Gas 360) – Goldman Sachs has raised its oil price forecasts for the remainder of 2026 and 2027, warning that persistent geopolitical tensions and the possibility of renewed supply disruptions could keep crude prices elevated despite recovering petroleum production in the Middle East.The investment bank increased its December 2026 Brent crude forecast to $105 per barrel from $90, a nearly 17% upward revision. Its West Texas Intermediate forecast rose to $94 per barrel from $81.Goldman also raised its average 2027 Brent forecast to $88 per barrel from $80 and its WTI projection to $78 from $73, reflecting expectations that geopolitical uncertainty will continue influencing global petroleum markets.The revised outlook follows months of disruptions to Middle Eastern oil production and transportation associated with the conflict involving Iran, alongside continued threats to energy infrastructure and commercial shipping.Although regional production has been recovering, Goldman expects the market to maintain a substantial geopolitical risk premium because of uncertainty surrounding future supply interruptions.Analysts led by Daan Struyven and Yulia Zhestkova Grigsby incorporated an allowance for a potential global supply disruption of one million barrels per day into the bank’s 2027 base-case outlook.The bank identified intensified attacks on shipping, damage to petroleum infrastructure, and prolonged geopolitical instability as potential drivers of additional price increases.Under a more severe scenario, Goldman estimates Brent could reach $140 per barrel and average approximately $130 during 2027 if Persian Gulf production remains 3.5 million barrels per day below its 2025 average.That projection is a conditional scenario rather than the bank’s primary forecast.Conversely, a faster recovery in regional production combined with a sustainable diplomatic agreement could push Brent prices into the $60-per-barrel range.The wide difference between these scenarios reflects the uncertainty facing global petroleum markets.Goldman’s revisions also come as other financial institutions reassess their expectations. Morgan Stanley increased its fourth-quarter forecast for Dated Brent to $105 per barrel, while ANZ raised its year-end Brent futures forecast to the same level.Despite the higher projections, oil prices declined Monday as renewed diplomatic discussions involving Iran and Qatari mediators raised expectations that regional tensions could ease.The decline illustrates how quickly crude prices can respond to changes in geopolitical expectations even when physical supply conditions remain uncertain.For energy investors, higher price forecasts could support upstream producer revenues, free cash flow, and balance sheet strength.However, sustained volatility complicates capital allocation decisions, particularly for companies evaluating long-term drilling programs, acquisitions, and infrastructure investments.Refiners, transportation companies, and industrial energy consumers also face uncertainty surrounding feedstock costs, shipping expenses, and petroleum product availability.The outlook reinforces the importance of distinguishing temporary geopolitical premiums from longer-term supply constraints.Investors will be monitoring Middle Eastern production recovery, tanker movements through the Strait of Hormuz, global inventory levels, and diplomatic developments for indications of whether current price expectations are sustainable.Disclaimer This informational, opinion, and insights article is provided for informational purposes only and does not constitute investment, legal, or financial advice. The views expressed are based on publicly available information and market conditions at the time of publication and are subject to change without notice.