Goldman Sachs has published research naming five oil stocks it rates as Buy, saying the sector is entering a new capital spending cycle. The bank says producers need to replace reserves and meet global demand.
The five stocks are Halliburton, Cenovus, ConocoPhillips, Valero, and Diamondback Energy.
At the same time, Goldman raised its Brent crude price forecast to $90 per barrel for Q4 2026. The bank also raised its WTI forecast to $83 per barrel for the same period.
The revised forecasts come as Middle East oil output has fallen. U.S.-Iran peace talks have stalled, and shipments through the Strait of Hormuz remain constrained.
Goldman now expects Hormuz exports to normalize by end of June, pushing back its earlier estimate of mid-May. Gulf oil production recovery is also expected to be slower than previously forecast.
Citi has also raised its Brent outlook, with a base case of $110 per barrel for Q2 2026. Under a bull-case scenario, Citi sees Brent hitting $150 if Hormuz disruptions last through June.
Goldman’s Brent futures for 2028–2030 currently trade at $70–$75 per barrel, below the bank’s own estimate of $75–$80. The bank says restarting U.S. shale growth is key to avoiding supply deficits in 2026.
Halliburton reported stronger-than-expected Q1 2026 earnings. The company won a contract in Argentina and announced a deal with Greenland Energy for consulting and logistics services. Several firms raised their price targets following the results.
Cenovus offers growth potential from its Christina Lake and West White Rose projects by 2030. S&P Global Ratings revised its outlook on Cenovus to stable from negative, citing progress on debt reduction.
ConocoPhillips was added to Goldman’s U.S. conviction list. The bank highlights free cash flow growth from Alaska and LNG projects, including Willow and Qatar, by 2030. Raymond James and Piper Sandler both raised price targets on the stock.
Valero benefits from tight refining markets. Middle East refinery outages are running 1.7 million barrels per day above seasonal norms. Gulf Coast refining indicators for the first half of 2026 are up 95% versus the same period last year. Goldman projects a free cash flow yield of around 10% for Valero from 2026 to 2028.
Diamondback Energy is viewed as well positioned among shale producers. It has a strong drilled-but-uncompleted well position in the Permian Basin. The company plans to increase frac crews from 4.5 to around five and reported higher-than-forecast pre-hedge oil prices for Q1 2026.
Oil edged higher on Monday as U.S.-Iran talks stalled and Hormuz shipments remained restricted.
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