As the year draws to a close, Goldman Sachs anticipates a decline in oil prices driven by growing economic risks and increased oil supply from OPEC+. With mounting tensions on the global stage and an elevated risk of recession, the bank’s analysts are closely monitoring the dynamics of energy markets.

The recent drop in oil prices has become a significant factor that could dramatically change the financial landscape of Saudi Arabia and its ambitious economic goals. Predictive analytics from Goldman Sachs project that the kingdom’s budget deficit may reach $67 billion this year. This figure is more than double the government's initial expectations for the end of 2025 and poses additional challenges for Crown Prince Mohammed bin Salman.

Recent days have brought considerable volatility to the global oil market, which has witnessed a significant decline in oil prices following unforeseen events. Decisions made by President Donald Trump and unexpected changes in production from OPEC+ created a double shock that swiftly altered the energy landscape.

In recent days, commodity markets have experienced a sharp decline in prices, raising concerns among investors and economists alike. This downturn is occurring against the backdrop of escalating trade tensions between the United States and China, significantly impacting indices and futures for key commodities.

Thursday brought unexpected developments in the global financial market, as eight countries from the OPEC+ alliance decided to hasten their plans to increase oil production. Instead of gradually phasing out production cuts, they chose to ramp up output by 411,000 barrels per day starting in May. This decision has notably impacted oil prices, triggering a sharp decline.

Just recently, BP Plc announced its revised strategy aimed at bolstering its market position. However, the energy investment sector has shown its inherent volatility, especially in light of recent developments.

Oil prices fell by more than 1% in early trading on Monday, following a statement by former U.S. President Donald Trump urging OPEC to lower crude prices. Coupled with significant measures to boost oil and gas production in the United States during the first week of his presidency, this has introduced new dynamics to the global energy market. These developments highlight key factors influencing the industry's balance and their potential economic implications.

The futures prices for WTI crude oil (West Texas Intermediate) saw a decline during the American trading session on Monday. This drop was driven by increasing concerns regarding oil demand and other factors that could pressure the market.