Goldman Sachs has slashed its forecast for oil prices by nearly 10%, citing weak demand in China and a glut of supply from sanctioned countries, including Russia. The Wall Street bank now thinks Brent crude, the global oil benchmark, will cost $86 a barrel in December, compared with its previous estimate of $95, while West Texas Intermediate (WTI) crude will fetch $81 a barrel, down from $89. Western firms can work with Russian producers only if they respect the price caps imposed on the country’s oil by Group of Seven countries. In a separate note, also published Sunday, Goldman Sachs said weakness in China’s property market would put a “multi-year growth drag” on the world’s second-largest economy. Oil prices have been falling despite Saudi Arabia — the world’s biggest crude exporter — saying it plans to reduce production by 1 million barrels per day next month to buoy prices as it anticipates a slowdown in global demand.

Source: CNN June 12, 2023 14:00 UTC