Goldman Sachs Lowers Oil Price Forecasts, Says US Supply 'Beating Expectations,' Downplays Libya Output Disruptions
Portfolio Pulse from Piero Cingari
Goldman Sachs has lowered its oil price forecasts, citing increased US supply and faltering Chinese demand. The bank now expects Brent crude to range between $70 and $85 per barrel, with a 2025 average of $77. Despite robust US supply, potential geopolitical and inventory volatility could impact prices.
August 27, 2024 | 1:18 pm
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The United States Oil Fund (USO) saw a 3% spike due to geopolitical tensions and Libya's production disruptions. However, Goldman Sachs expects these disruptions to be short-lived, and the overall oil price forecast has been lowered.
USO is directly impacted by oil price fluctuations. While short-term geopolitical tensions caused a spike, Goldman Sachs' lowered forecast suggests a neutral impact as disruptions are expected to be temporary.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80