Goldman Sachs – one of the most bullish banks regarding the oil outlook – on Monday cut its oil price forecast again amid rising global supplies and waning demand.
The bank has now cut its forecast for Brent crude for December to $86 a barrel, down from its previous estimate of $95 a barrel.
Thus, Goldman Sachs lowered its forecast for oil prices for the third time in the last six months, after it was likely that the price of a barrel of Brent crude would reach $100.
Goldman Sachs revised its forecasts for a number of reasons, including an increase in supplies from countries facing sanctions such as Russia, Iran and Venezuela, indicating that Russian supplies have almost completely recovered despite the sanctions imposed by Western countries.
Goldman analysts – including Callum Bruce and Jeff Currie – wrote in the note that recession fears are also weighing on prices, possibly representing higher interest rates. Strong obstacles to the rise in oil prices.
And Saudi Arabia announced last week an additional voluntary cut in its oil production by about one million barrels per day for a month in July, which is an extendable decision.
OPEC Plus countries also decided to extend the voluntary production cut until the end of 2024 instead of the end of 2023 in an attempt to support oil prices.
(Reuters)
2023-06-12 03:46:50
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