Goldman Sachs Group Inc., one of the crucial bullish banks on the outlook for oil, has as soon as once more lowered its worth forecasts amid rising world provides and waning demand.
The financial institution has dropped its Brent forecast for December to $86 a barrel, down from its earlier estimate of $95 a barrel, in line with a word to shoppers on Sunday. That is Goldman’s third downward revision within the final six months after having beforehand stood by its bullish $100-a-barrel prediction. Brent’s August contract settled at $74.79 a barrel on Friday.
“Now we have by no means been this unsuitable for this lengthy with out seeing proof to alter our views,” Jeff Currie, Goldman’s head of commodities analysis, mentioned in a Bloomberg Tv interview final week.
Provide will increase from nations going through sanctions — Russia, Iran and Venezuela — are a key driver within the cheaper price outlook, in line with Goldman. Russia provide manufacturing, specifically, has “practically absolutely recovered” regardless of sanctions from Western international locations.
Recession fears are additionally weighing on costs, with greater rates of interest more likely to be a “persistent headwind” to greater costs, wrote Goldman analysts together with Callum Bruce and Currie within the word.