Goldman Sachs has increased its oil price forecasts for 2026 and 2027, expecting Brent crude to average higher prices each quarter in 2026 and raising the 2027 normalized price to $75 per barrel. This adjustment has led the bank to identify seven energy stocks with significant upside potential, including Permian-focused exploration and production companies like Diamondback Energy, Ovintiv, and Permian Resources, as well as majors like ConocoPhillips and Chevron. Goldman projects strong free cash flow growth and total returns for these names, with Viper Energy offering the highest potential gain due to its low-cost royalty model. These upgrades reflect optimism about the energy sector's prospects amid rising oil prices and tightening supply conditions.
