Goldman Sachs expects Brent prices to decline to the low $50s per barrel by late 2026 due to a widening of the oil surplus next year.
"We expect the oil surplus to widen and average 1.8 million barrels per day in 2025 Q4 - 2026 Q4, resulting into a nearly 800 million barrels rise in global stocks by end 2026," the bank said in a note Tuesday.
Oil prices steadied on Wednesday, after falling in the previous session, as investors watched for fresh developments in the Ukraine war and weighed an industry report that showed a drop in U.S. crude inventories.
U.S. special envoy Steve Witkoff said on Tuesday he will meet Ukrainian representatives in New York this week, adding that Washington is also in talks with Russia as it seeks to end the war.
Brent crude futures were down 4 cents at $67.18 a barrel as of 0820 GMT, while West Texas Intermediate (WTI) crude futures were down 3 cents at $63.22.
Both contracts fell more than 2% on Tuesday after beginning the week at their highest levels since early August.
Oil found some support on Wednesday from the American Petroleum Institute's weekly supply report, which market sources said showed U.S. crude, gasoline and distillate inventories fell last week. Official inventory data is out at 1430 GMT.
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The API report is helping prices stabilize, said Tamas Varga of oil broker PVM.
In recent developments, Russian refineries have been hit by Ukrainian drone attacks, forcing them to export the crude they cannot process.
Russia has revised up its crude oil export plan from western ports by 200,000 barrels per day in August from the initial schedule after attacks last week, three people familiar with the matter said on Tuesday.