Goldman Sachs expects diesel prices to remain elevated through 2027 as refineries worldwide face capacity constraints, while oil demand looks set to recover after governments and businesses began restocking depleted inventories. Nikhil Bhandari, co-head of Asia-Pacific natural resources research at Goldman Sachs, told CNBC that keeping diesel prices high is necessary to prevent demand from rebounding too strongly and adding further pressure on the refining system. Goldman Sachs expects the spread between diesel and jet fuel versus global crude prices to average more than 40 dollars per barrel in 2027, more than double the normal level of 20 dollars per barrel. It also expects Brent crude to hold steady at 80 dollars per barrel as crude shipments through the Strait of Hormuz gradually return to normal. Bhandari believes that if oil demand recovers next year, refineries worldwide may have to run at the highest rate in 20 years. Baden Moore, a resources and energy research analyst at CLSA, said the recent slowdown in demand does not mean oil demand has disappeared permanently, noting that demand for basic petroleum products remains strong and that global restocking could take as long as two years.