(Bloomberg) – Goldman Sachs Group Inc., one of the most optimistic banks on the outlook for oil, has once again lowered its price forecast amid rising global supply and falling oil asked.
Bloomberg’s Most Read
The bank has now lowered its Brent forecast for December to $86 a barrel, down from its previous estimate of $95 a barrel. This is Goldman’s third downgrade in the past six months after previously maintaining its bullish forecast of $100 a barrel. The Brent August contract settled at $74.79 a barrel on Friday.
“We’ve never been wrong this long without seeing evidence to change our view,” Jeff Currie, head of commodities research at Goldman, said in an interview with Bloomberg Television last week.
According to Goldman, increased supply from countries under sanctions – Russia, Iran and Venezuela – is a key factor in the outlook for lower prices. Russia’s supply production, in particular, has “almost fully recovered” despite Western sanctions.
Recession fears are also weighing on prices, with rising interest rates likely to be a “persistent headwind” to higher prices, Goldman analysts including Callum Bruce and Currie wrote in the note. .
Bloomberg Businessweek’s Most Read
©2023 Bloomberg LP