Goldman Sachs has increased its oil price forecasts for 2026 and 2027, expecting Brent crude to average higher prices each quarter in 2026 and a normalized price of $75 per barrel in 2027. This revision boosts valuations in the energy sector, prompting Goldman to identify seven energy stocks with significant upside potential, including Permian-focused exploration and production companies and major players like ConocoPhillips and Chevron. The bank highlights stocks such as Diamondback Energy, Ovintiv, Viper Energy, and Cenovus Energy, projecting total returns ranging from 10% to 29%. These companies benefit from strong free cash flow yields, strategic projects, and cost reductions, suggesting promising investment opportunities amid rising oil prices.
