Goldman Sachs CEO Solomon: Tight Oil Supply to Drive Consumer Changes, Inflation, and Demand Destruction

David Solomon, chief executive of Goldman Sachs, said tightening crude oil supply will push consumers to alter their behavior in the second half of the year. He spoke at an industry event in New York on June 3, 2026. Solomon stated that the imbalance between oil supply and demand will push inflation higher.

He noted that consumers are already changing their behavior in response to higher energy prices and that those changes could become more pronounced after July. He said the Federal Reserve will likely keep interest rates unchanged because of these developments. “You can see some economic data in the next six months that shifts the sentiment,” Solomon said.

Solomon added that investor sentiment about the tech industry remains very optimistic. “We are definitely in a moment where there’s more greed than there is fear,” he said. Inflation rose at the fastest rate in three years in April.

Brent crude traded at over $97 per barrel on June 3, 2026, while West Texas Intermediate traded at close to $95 per barrel. Goldman Sachs commodity analysts said in a note that demand destruction resulting from higher prices will somewhat soften the blow from physically tighter oil markets.