Goldman Sachs Bearish on Oil Prices: Predicts Fall to $60 a Barrel
Leading global investment bank Goldman Sachs has trimmed its oil price forecast, indicating that Brent Crude will fall to $60. The bank had previously stated that the prices of oil could fall to $63, but they have now gone down further. The forecast comes on a higher OPEC supply assumption from July this year.
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After the Goldman Sachs prediction was made public, Brent Crude oil prices were already trading at the $61.50 range. It briefly touched a low of $60.21 on Monday but went up to $61.50 on Tuesday. In a recent OPEC+ producers meeting led by Saudi Arabia and Russia, the two concluded to increase production capacity by 411,000 barrels per day (bpd).
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Oil Prices on Their Way Down to $60 a Barrel: Goldman Sachs
Following the announcement of the aggressive hike in production, Goldman Sachs wrote that Brent Crude could fall to $60. “Saturday’s decision increases our confidence that the new baseline size of production increase is likely 0.41mb/d,” wrote the bank. Therefore, the energy sector remains at risk this year as the markets are yet to be stabilized.
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“Our key conviction remains that high spare capacity and high recession risk skew the risks to oil prices to the downside,” Goldman Sachs’ strategists wrote in a note. The development indicates that Brent Crude oil prices will touch a low of $60, according to Goldman Sachs. “The decision likely reflects relatively low inventories and a broader shift to a more long-run equilibrium focused on supporting internal cohesion and on strategically disciplining U.S. shale supply,” the investment bank’s strategists said.
OPEC+ group’s decision to increase the production capacity of Brent Crude will affect oil prices in 2025, wrote Goldman Sachs. Stepping up output when trade wars and tariffs are ripe is seen as a recipe for disaster. The costs of procuring will go high, leading to losses for refiners and an increase in procurement.
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Goldman Sachs Bearish on Oil Prices: Predicts Fall to $60 a Barrel
Leading global investment bank Goldman Sachs has trimmed its oil price forecast, indicating that Brent Crude will fall to $60. The bank had previously stated that the prices of oil could fall to $63, but they have now gone down further. The forecast comes on a higher OPEC supply assumption from July this year.
Also Read: Ripple: Forecast Suggests XRP Could Plunge Nearly 50%
After the Goldman Sachs prediction was made public, Brent Crude oil prices were already trading at the $61.50 range. It briefly touched a low of $60.21 on Monday but went up to $61.50 on Tuesday. In a recent OPEC+ producers meeting led by Saudi Arabia and Russia, the two concluded to increase production capacity by 411,000 barrels per day (bpd).
Also Read: Shiba Inu Rose 91,000,000% Last Bull Run: Can It Surge the Same Again?
Oil Prices on Their Way Down to $60 a Barrel: Goldman Sachs
Following the announcement of the aggressive hike in production, Goldman Sachs wrote that Brent Crude could fall to $60. “Saturday’s decision increases our confidence that the new baseline size of production increase is likely 0.41mb/d,” wrote the bank. Therefore, the energy sector remains at risk this year as the markets are yet to be stabilized.
Also Read: XRP Went From $0.01 to $3.40 Last Bull Run: How High Can It Go Next?
“Our key conviction remains that high spare capacity and high recession risk skew the risks to oil prices to the downside,” Goldman Sachs’ strategists wrote in a note. The development indicates that Brent Crude oil prices will touch a low of $60, according to Goldman Sachs. “The decision likely reflects relatively low inventories and a broader shift to a more long-run equilibrium focused on supporting internal cohesion and on strategically disciplining U.S. shale supply,” the investment bank’s strategists said.
OPEC+ group’s decision to increase the production capacity of Brent Crude will affect oil prices in 2025, wrote Goldman Sachs. Stepping up output when trade wars and tariffs are ripe is seen as a recipe for disaster. The costs of procuring will go high, leading to losses for refiners and an increase in procurement.
Read More