© Reuters Goldman Sachs cuts its forecast for oil prices in the fourth quarter
Arabictrader.com – In its latest notes released Monday morning by leading US investment bank Goldman Sachs (NYSE:) regarding the global oil market, the bank lowered its forecast for average oil prices during the fourth quarter of this ‘year.
Goldman indicated through the memo that it now expects the average price of a barrel to reach only about $100 a barrel, down from the $110 a barrel Goldman Sachs expected in its earlier note in which it raised its expectations after OPEC’s decisions last October to cut its daily oil production by 2 million barrels.
Goldman Sachs indicated that the reason behind lowering its oil price expectations by such a large amount is mainly due to its expectations of the return of strict epidemiological shutdowns in China, which will clearly reduce oil demand, especially after the People’s Republic recorded the first death from Covid-19 in 6 months this morning, which prompted the authorities of some vital neighborhoods to invite citizens to pledge to stay in their homes, while others had already imposed closures.
Goldman Sachs also notes that there is currently an increase in the volume of oil flows from Russia, before the European Union bans its maritime imports of oil, as well as before the implementation of the proposed Russian cap plan by the United States.
